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Disability Risk - ANS7x more likely than death during working years 1/10 will be permanently disabled before 65 Potentially more devastating financially than breadwinner's death -Loss of income, additional expenses Many workers have no disability income insurance Workers compensation and Social Security DI Short-term coverage disability plan - ANSUsually < 6 months If provided by employer, plan may be insured or self-insured Long-term coverage disability plan - ANSWaiting peri...

Examples of Employee Benefits - ANS1. Traditional - Health insurance - Life insurance - Disability income plans - Retirement plans 2. Non-Traditional - Child-care - Legal Service plans - Employee Assistance Plans a) Alcohol abuse b) Drug abuse - Wellness programs - Transportation programs Employee Benefits - ANS5 Traditional Categories 1. Legally required social insurance 2. Payments for private insurance and retirement plans 3. Payments for time not worked 4. Extra cash pay...

What is meant by the phrase efficient allocation of resources? What mechanism fosters the efficient allocation of resources in the United States? - ANSResources are efficiently allocated if they are given to enterprises that will use them to provide goods and services desired by society and not to enterprises that will waste them. The capital markets are the mechanism that fosters this efficient allocation of resources. What is the primary objective of financial accounting? - ANSThe primary...

MRL3701 with verified solutions exam bundle

FUNCTION OF THE TRUSTEE - ANS1. Collect the assets in the estate 2. realize them 3. distribute proceeds amongst creditors in the order of preference laid down by the Act. VESTING OCCURS - ANSeven in respect of property which has been sold in execution if the debtor's estate is sequestrated before delivery or transfer of the property concerned. IF PROVISION TRUSTEE IS APPOINTED - ANSEstate vests in him before vesting in the trustee THE ESTATE REMAINS VESTED IN THE TRUSTEE UNTIL - ...

CONTRACT COMPLETED BY INSOLVENT BUT NOT BY OTHER PARTY - ANSIf insolvent has carried out his side of the contract and only other party needs to perform, the right to that performance is an asset in the insolvent estate and vests in the trustee. If right is one to payment the trustee may enforce it in same manner as other debts owed to the insolvent estate. If right is to some the other performance trustee may either sell the right along with the other estate assets or enforce performance ...

PROHIBITED CONTRACTS - ANSMay not make a contract that purports to dispose of any property of his insolvent estate. May not without the written consent of the Trustee enter into a contract which adversely affects his estate or any contribution which he is obliged to make towards his estate. MERVIS BROTHERS v HANEKOM - ANSM sued H the insolvent for the amount of a debt incurred prior to sequestration. Action was based on an undertaking given by H after sequestration that he would pay the ...

DISPOSITION WHICH PREFERS ONE CREDITOR ABOVE ANOTHER :VOIDAABLE PREFERENCE - ANSWhat must be proved: I.t.o. Se 29(1) court may set aside a disposition made by the insolvent not more than 6 months before the sequestration of his estate or his death (where he is deceased and estate in insolvent) if disposition had the effect of preferring one of the insolvent's creditors above another and immediately after the disposition was made, the liabilities of the insolvent exceeded the value of his as...

WINDING UP BY COURT - ANSAlthough only High Court has jurisdiction to wind up a company, both a High Court and a Magistrate's court have jurisdiction to wind up a corporation. The court having jurisdiction is that which has jurisdiction where the corporation's registered address or main place of business is situated. WHEN CORPORATION MAY BE WOUND UP BY THE COURT - ANSGrounds for wining up of CC and the parties who may apply for its winding up, mirror those for solvent and insolvent compan...

MEANING OF DISPOSITION - ANSS2 - term "disposition" means 'any transfer or abandonment of rights to property and includes a ale, lease, mortgage, pledge, delivery, payment, release, compromise, donation, or any other contract therefor, but doe not include a disposition in compliance with an order of the court' PROPERTY - ANSS2 means movable or immovable property, wherever situated within the Republic, includes a contingent interest in property other than the contingent interest of a fid...

APPLICATION FOR SEQUESTRATION - ANSForm & content of application: Brought by way of notice of motion supported by affidavit. Affidavit must be by the sequestrating creditor or anyone else who can attest to the facts. Affidavit to contain: a) Full names, status, occupation and address of the sequestrating creditor. Must be made evident that the creditor has locus standi to apply. When application is made by agent the affidavit must indicate that the agent is duly authorised to bring th...

In common parlance, a person may be said to be insolvent when his liabilities, fairly estimated, exceed his assets, fairly valued - ANSFALSE A debtor who has no assets and only liabilities cannot surrender his estates - ANSTRUE When the debtor applies for voluntary surrender, the debtor's affidavit, verifying that the statement of affairs is true and complete and that every estimated amount contained in it is fairly and correctly estimated, may be attested by the applicant's attorney. ...

VOLUNTARY SURRENDER OF PARTNERSHIP ESTATE - ANSApplication to surrender a partnership estate, must be brought by all the partners or their agents. However the following need not apply a. a partner not residing in the Republic b. a partner en commandite c. a special partner as defined in the Special Partnerships Limited Liability Act of 1861 SIMULTANEOUSLY WITH APPLICATION FOR SURRENDER OF PARTNERSHIP ESTATE - ANSEach partner must apply for the acceptance of the surrender of his priv...

WINDING UP MEANS - ANSessentially the procedure by which a company's assets are sold, its debts are paid, and any money left over is divided amongst the shareholders according to their rights. WINDING UP OF COMPANIES IS REGULATED BY THE FOLLOWING LEGISLATIVE PROVISIONS - ANS1. Section 79 - 81 of the Companies Act 71. Winding up of solvent companies 2. Chapter 14 of the Companies Act. 3. Various provision of the Insolvency Act. MODES OF WINDING UP AND ALTERNATIVES TO WINDING UP - ...

ELECTION AND APPOINTMENT - ANSAt first meeting of creditors, creditors who have proved their claims may elect one or two trustees. IF MORE THAN ONE PERSON IS NOMINATED - ANSindividual who obtains a majority votes in both number and value must be elected as sole trustee IF ONE PERSON OBTAINS A MAJORITY IN VALUE AND ANOTHER PERSON A MAJORITY IN NUMBER - ANSBoth must be elected trustees However if either party declines a joint trusteeship the other must be elected sole trustee SHOULD...

TYPES OF CREDITORS - ANS1. concurrent creditors 2. secured creditors 3. preferent creditors CONCURRENT CREDITS - ANS- does not enjoy any advantage over other creditors of the insolvent. - are paid out of the free residue after any preferent creditors have been paid. - all rank equealy - should free residue be insufficient to meet their claims, each receives an equal proportion of his claim by way of a dividend. FREE RESIDUE - ANSthat portion of the estate which is not subject...

TWO WAYS IN WHICH A DEBTOR'S ESTATE MAY BE SEQUESTRADED - ANS1. The debtor himself (or his agent) may apply to court for acceptance of the surrender of his estate (s3.(1)). - Known as voluntary surrender. 2. A creditor or creditors (or their agent) may apply to court for the sequestration of the debtor's estate (s9(1)). - Compulsory sequestration. WHO MAY APPLY FOR VOLUNTARY SURRENDER - ANS1. Estate of a natural person - If agent applies must be expressly authorised to do so. 2. Estate ...

REQUIREMENTS - ANSCourt must be satisfied: 1. The applicant has established a claim which entitles him, in terms of s9(1) to apply for sequestration of the debtor's estate. 2. the debtor has committed an act of insolvency or is insolvent 3. there is reason to believe that it will be to the advantage of creditors of the debtor if his estate is sequestrated (s12(1)) ONUS of satisfying court on these three matters rests throughout on the sequestrating creditor. APPLICANT ENTITLED TO APPL...

NOTICE OF INTENTION TO SURRENDER - ANS1. Publish notice of surrender in Government Gazette and newspaper circulating in the magisterial district where debtor resides FORM A REQUIREMENTS - ANS1. full names, address and occupation of debtor 2. date upon which, and the particular Division of the High Court before which, the application for acceptance of the surrender will be made; 3. when and where the debtor's statement of affairs will lie for inspection as required by the Act. PUBLICAT...

person's - ANSThe terms sequestration and sequestration order should stritly be used only with reference to a ____ estate personal - ANSIn Ex Parte Henning, the statement of affairs that lay for inspection did not contain the ____ information 8(g) - ANSAccording to section ____ of the Insolvency Act, it is an act of insolvency if a debtor gives notice in writing to a creditor that he is unable to pay one or more of his debts written - ANSA debtor may not, without the ____ consent o...