MRL3701 Exam Bundle

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 ...

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 adva...

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 ...

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 ...

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 ...

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 ...

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...

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 a...

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 t...

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 orde...

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 ...

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) i...

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. M...

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 ...