- Study guides, Class notes & Summaries

DISPOSITION WHICH PREFERS ONE CREDITOR ABOVE ANOTHER :VOIDAABLE PREFERENCE Correct Answer What 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 ...

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5 pages

Written in 2023/2024

Grade A+

ExamsGuru

ELECTION AND APPOINTMENT Correct Answer At first meeting of creditors, creditors who have proved their claims may elect one or two trustees. IF MORE THAN ONE PERSON IS NOMINATED Correct Answer individual 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 Correct Answer Both must be elected trustees However if either party declines a joint trusteeship the other must be ele...

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4 pages

Written in 2023/2024

Grade A+

ExamsGuru

WINDING UP MEANS Correct Answer essentially 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 Correct Answer 1. 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...

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14 pages

Written in 2023/2024

Grade A+

ExamsGuru

TYPES OF CREDITORS Correct Answer 1. concurrent creditors 2. secured creditors 3. preferent creditors CONCURRENT CREDITS Correct Answer - 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 Correct Answer that portion of the ...

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4 pages

Written in 2023/2024

Grade A+

ExamsGuru

APPLICATION FOR SEQUESTRATION Correct Answer Form & 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...

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8 pages

Written in 2023/2024

Grade A+

ExamsGuru

WINDING UP BY COURT Correct Answer although 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 Correct Answer Grounds for wining up of CC and the parties who may apply for its winding up, mirror those for solvent an...

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3 pages

Written in 2023/2024

Grade A+

ExamsGuru

TWO WAYS IN WHICH A DEBTOR'S ESTATE MAY BE SEQUESTRADED Correct Answer 1. 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 Correct Answer 1. Estate of a natural person - If agent applies must be expressly authorised to ...

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2 pages

Written in 2023/2024

Grade A+

ExamsGuru

VOLUNTARY SURRENDER OF PARTNERSHIP ESTATE Correct Answer Application 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 Correct Answer Each partner must apply for the acceptance of the sur...

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3 pages

Written in 2023/2024

Grade A+

ExamsGuru

REQUIREMENTS Correct Answer Court 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 ENTITLE...

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11 pages

Written in 2023/2024

Grade A+

ExamsGuru

2023 LaTEST QUESTIONS aND aNSWERSEXAM PACK MRL3701 Revision PACK Questions. AnswersNOTES Insolvency Law MRL301-M 1. INTRODUCTION TO INSOLVENCY LAW 1.1. Meaning of “insolvency” Section 2 of the Insolvency Act, 24 of 1936 (“Act”) – Definitions 'insolvent' when used as a noun, means a debtor whose estate is under sequestration and includes such a debtor before the sequestration of his estate, according to the context. 'insolvent estate' means an estate under sequestration...

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205 pages

Written in 2023/2024

Grade A+

AdelineJean

MRL3701 Revision PACK Questions. AnswersEXAM PACK MRL3701 Revision PACK Questions. AnswersNOTES Insolvency Law MRL301-M 1. INTRODUCTION TO INSOLVENCY LAW 1.1. Meaning of “insolvency” Section 2 of the Insolvency Act, 24 of 1936 (“Act”) – Definitions 'insolvent' when used as a noun, means a debtor whose estate is under sequestration and includes such a debtor before the sequestration of his estate, according to the context. 'insolvent estate' means an estate under seques...

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205 pages

Written in 2023/2024

Grade A+

AdelineJean

MRL3701 LATEST EXAM PACK. VERIFIED Q AND A.MRL 3701 OCTOBER/NOVEMBER 2023 QUESTION 1 a) Inability to pay debts is, at most merely evidence of insolvency. (page 3) b) Brenda’s application for voluntary surrender must be set out the causes of her insolvency in some detail to enable the court to determine whether the application is ......................... c) Christopher commits an act of insolvency by departing from his dwelling with the intent by doing so to evade payment of his debt...

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482 pages

Written in 2023/2024

Grade A+

AdelineJean

Question: “Critically discuss the case of Harksen v Lane 1998 (1) SA 300 (CC) with reference to the relevant legislation.” Answer: Harksen v Lane 1998 (1) SA 300 (CC); The applicant in these proceedings is, Mrs. Jeanette Harksen, at the time she was married out of community of property to Mr. Harksen. The first and second respondents are the trustees in the insolvent estate of Mr. Harksen. The third respondent is the Master of the Cape of Good Hope Provincial High Court. The fou...

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6 pages

Written in 2023/2024

Grade A+

TIFFACADEMICS

Mrl3701 Assignment 1 Semester 1 - 2022

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4 pages

Written in 2022/2023

Grade A+

Smartdove

Mrl3701 Assignment 2 Of Semester 1 2023

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5 pages

Written in 2022/2023

Grade A+

Loyimproved

Mrl3701 Assignment 1 Of Semester 1 2023

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4 pages

Written in 2022/2023

Grade A+

Loyimproved

Mrl3701 Assignment 1 Of Semester 1 2023

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4 pages

Written in 2022/2023

Grade A+

smartgrades

Mrl3701 Assignment 2 Of Semester 1 2023

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5 pages

Written in 2022/2023

Grade A+

smartgrades

Mrl3701 - Study Unit 17 Creditors' Claims And Their Ranking - The Different Types Of Creditors

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5 pages

Written in 2022/2023

Grade A+

Bensuda

MRL3701 Exam Questions & Answers

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20 pages

Written in 2022/2023

Grade A+

Bensuda