Difference fixed and floating charge, Business Law and Ethics

Part A

Companies can raise finance by borrowing money and securing the debt by way of fixed or floating charge. Using case law in your answer explain what is the distinction between a fixed and floating charge and when one would be used over the other.

Part B

Consider the position of a company that is experiencing financial difficulties and has not paid the rent of its manufacturing premises for three months. The directors (at the same time) have allowed the company to enter into a new debt of $1,000,000 for new plant and equipment that now may not be paid by the due date. Advise whether the directors may have breached any provision of the Corporations Act. In your answer identify any applicable case law and legislation that may be relevant.

 

 

Posted Date: 2/26/2013 4:38:15 AM | Location : United States







Related Discussions:- Difference fixed and floating charge, Assignment Help, Ask Question on Difference fixed and floating charge, Get Answer, Expert's Help, Difference fixed and floating charge Discussions

Write discussion on Difference fixed and floating charge
Your posts are moderated
Related Questions
What are the origins of open method of coordination The origins of the OMC lie in the Lisbon European Council (March 2000), which made its introduction as the primary means of

PROTECTION OF CREDITORS: Where the reduction of capital involves diminution of unpaid capital or repayment to shareholders of paid-up capital, creditors have a statutory right

QUESTION 1 Why is the United States, which is a leader country in so many areas, so far behind in the provision of social welfare benefits? QUESTION 2 (a) Who uses private

State the theory of international antitrust A fourth approach is the allocation of jurisdiction over conduct with multijurisdictional effects to one agency by another agency th

A is large property developer who is listed on the Kuala Lumpur Stock Exchange. B is a building contractor. A employed B in 2008 to build a large office complex comprising 3 towers

RESERVE CAPITAL: The reserve capital is defined by S.62 of the Act as the portion of the issued but uncalled capital of a limited company which the company's members, by speci

Negotiable Instruments A negotiable instrument cannot be described regards precision, although can be explained like a commercial document that represents money. Whether it pa

Question 1: (a) In the Mauritian Legal System, there is a hierarchy of courts. Describe the various courts. (b) State and critically examine the features of the 5 main sour

Brief theoretical conceptualization of  Multiple Equilibria We now come to a brief theoretical conceptualization which may give us a basis for choice of agenda or a policy prop

Delays: However certain standard defences knows as "essoins" caused considerable delay earlier than a case could be heard.  Now for a certain condition like the hearing of a c