Need help on case study

Discussion in 'Insolvency' started by mohammedalaraimi, Jun 1, 2020.

  1. mohammedalaraimi

    mohammedalaraimi UKBF Newcomer Free Member

    13 0
    Hi everyone,

    Can you please help me with the case study, I need information on the last question (b)

    The toy manufacturers, My Little Pit Pony Co.Ltd., have been experiencing financial problems for several months, but the directors have continued to trade. At the next AGM the shareholders pass a Special Resolution to voluntarily wind-up the company.
    (a) using legal references, explain what happens next in the winding-up process.

    AND Now assume that the company has been officially wound-up and the Liquidator is about to begin paying creditors. There are insufficient assets to pay all the creditors, but it is now clear that, during the last few months, the directors have been selling all the company cars to their own (adult) children.

    (b) using legal references, explain whether the Liquidator can find any extra money from this situation.
     
    Posted: Jun 1, 2020 By: mohammedalaraimi Member since: Mar 11, 2020
    #1
  2. fisicx

    fisicx It's Major Clanger! Staff Member

    32,732 9,705
    In which country is this taking place?

    The law on insolvency will be different depending on where the company is registered.

    Is this an exam question?
     
    Posted: Jun 1, 2020 By: fisicx Member since: Sep 12, 2006
    #2
  3. mohammedalaraimi

    mohammedalaraimi UKBF Newcomer Free Member

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    Hi, Its the United Kingdom
     
    Posted: Jun 1, 2020 By: mohammedalaraimi Member since: Mar 11, 2020
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    22,971 2,765
    So only 3 sets of laws then.
     
    Posted: Jun 1, 2020 By: Mr D Member since: Feb 12, 2017
    #4
  5. mohammedalaraimi

    mohammedalaraimi UKBF Newcomer Free Member

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    Do you mind helping me out specifically with question b?
     
    Posted: Jun 1, 2020 By: mohammedalaraimi Member since: Mar 11, 2020
    #5
  6. Mr D

    Mr D UKBF Legend Free Member

    22,971 2,765
    No, its a question with insufficient information. You were just given that much?

    Not for GCSE is it?
     
    Posted: Jun 1, 2020 By: Mr D Member since: Feb 12, 2017
    #6
  7. fisicx

    fisicx It's Major Clanger! Staff Member

    32,732 9,705
    Posted: Jun 1, 2020 By: fisicx Member since: Sep 12, 2006
    #7
  8. billybob99

    billybob99 UKBF Regular Free Member

    1,551 461
    Busted.
     
    Posted: Jun 1, 2020 By: billybob99 Member since: Apr 23, 2013
    #8
  9. mohammedalaraimi

    mohammedalaraimi UKBF Newcomer Free Member

    13 0
    I really need help on the second question about making money, I do all the research but I just need a track to follow for the answer.
     
    Posted: Jun 1, 2020 By: mohammedalaraimi Member since: Mar 11, 2020
    #9
  10. Scalloway

    Scalloway UKBF Legend Free Member

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    The liquidator needs reassurance that the sales of compnay assets were done at market value
     
    Posted: Jun 1, 2020 By: Scalloway Member since: Jun 6, 2010
    #10
  11. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,523 448
    We cannot simply give you the answer but maybe if you can tell us what you think the answer is we can give you some prompts.
     
    Posted: Jun 3, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #11
  12. MBE2017

    MBE2017 UKBF Ace Free Member

    1,798 615
    £16.97.
     
    Posted: Jun 3, 2020 By: MBE2017 Member since: Feb 16, 2017
    #12