Order of application of assets, Business Law and Ethics

Order of application of assets:

The order of application of assets is therefore as follows:

(a) secured creditors who have fixed charges are entitled to be paid out of their security so far as it suffices.  If the security is insufficient in value to pay the debt in full the creditor rank as an unsecured creditor for the balance;

(b) the costs of winding up are paid next, i.e. they rank before floating charges;

(c) preferential unsecured debts are paid next, i.e. they rank before floating charges in so far as there are no other assets available to pay preferential debts.  If the floating charge covers the entire undertaking and property of the company (as is normal in modern practice) there will be no uncharged assets;

(d) debts secured by floating charges come next in order;

(e) unsecured non-preferential debts come next;

(f) deferred debts come last in order.

Posted Date: 1/15/2013 5:25:47 AM | Location : United States







Related Discussions:- Order of application of assets, Assignment Help, Ask Question on Order of application of assets, Get Answer, Expert's Help, Order of application of assets Discussions

Write discussion on Order of application of assets
Your posts are moderated
Related Questions
Bulky and technical Bills: In fact some Bills are so bulky and technical hence they are passed without sufficient debate it means Parliament lacks the time and knowledge to th

Your task is to examine and analyse the article by Shae McCrystal The Fair Work Act 2009 (Cth) and the Right to Strike. (2009) (December) Vol 23 Australian Journal of Labour Law

State Article 2 of Universal Declaration of Human Rights Article 2: 'Everyone is  entitled  to  the rights and freedoms set  forth in  this Declaration...' - This clause iden

COMPANY MANAGEMENT: A company, being an artificial person, cannot manage its own affairs. It is therefore not surprising to find that the articles of every registered company

Jack has operated a house building business as a sole trader for a number of years. Now, his accountant has recommended that he should consider registering as a company in order to

List of Members: S.130(6) provides that the directors shall cause a list showing the names and postal addresses of the members of the company, and the number of shares held th

Proceedings at meetings - Held: Held: The resolution as passed was invalid since it was not the special resolution of which notice had been given.  Even the retention of 321 p

1.(a) identify and give out the explanation of different categories of legal system. (b) How is legal system in bznz enforce

Question 1: Constructive dismissal is inherently different from dismissal in the sense that it is the employee who necessarily takes the initiative in considering the contract

High Court - Establishment and Composition Establishment Further the High Court is established through S.60 (1) of the Constitution that states which 'there shall be a