MRL3701 Combined Units COMPLETE PACKAGE 2023

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 defin...

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 sequestratio...

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 ...

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 add...

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. - ...

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...

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 O...

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 ins...

MEANING OF DISPOSITION Correct Answer S2 - 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 wit...

PURCHASE OF GOODS IN TERMS OF INSTALLMENT AGREEMENT Correct Answer Section 84 (1) provides, on sequestration of the buyer's estate, the seller automatically acquires a hypothec over the res vendita whereby the balance outstanding under the agreement is secured. As no one may have a hypothec over hi...

PROHIBITED CONTRACTS Correct Answer May 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 est...

CONTRACT COMPLETED BY INSOLVENT BUT NOT BY OTHER PARTY Correct Answer If 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...

FUNCTION OF THE TRUSTEE Correct Answer 1. 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 Correct Answer even in respect of property which has been sold in execution if the debtor's estate...