Insolvency Law (MRL3701) Section 1 Questions

What is the definition of a “debtor” in terms of the Insolvency Act 24 of 1936? (4) A debtor means a person or a partnership or the estate of a person or a partnership which is a debtor in the usual sense of the word, except a body corporate or a company or other association of persons which may be placed in liquidation under the law relating to companies. What is the purpose of a notice of surrender? (2) The purpose of the notice of surrender is to alert creditors as to the intended application in case they wish to oppose the application. State the requirements which must be proved before the Court will grant a voluntary sequestration order. (4) 1. The preliminary formalities have been observed. 2. The debtor’s estate is in fact insolvent. 3. The debtor owns realizable property of sufficient value to defray all costs of the sequestration. 4. Sequestration will be to the advantage of creditors. What is the meaning of the term “spouse” for the purposes of the term “solvent spouse” under section 21 of the Insolvency Act? (3) For the purpose of section 21, “spouse” has an extended meaning and includes a wife or a husband married according to any law or custom, and also a person living with a member of the opposite sex, although not married to her or him (s 21(13)). According to Chaplin NO v Gregory, on the insolvency of a married man or woman who is living with a third person (i.e., not the legal spouse), the property of only the legal spouse, and not that of both the spouse and the third person, vests in the trustee. State the two maximum limits (in time and in money) to the employee’s preferent claim for arrear salary or wages in terms of section 98A of the Insolvency Act. (2) Salary or wages due to an employee, for a period not exceeding three months and to a maximum of R12 000. State three grounds on which the Master may remove a trustee from office. (3) Any three of the following: 1. he was not qualified for appointment or that his election or appointment was illegal or he has become disqualified ; 2. he has failed to perform any of his duties satisfactorily or