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
Q. Name based definition of phoenix activity? The approach taken in New Zealand has been to define phoenix activity in terms of the re-use of the name, or a name similar, to th

Public Company - Registration Procedures: Consent to act as director (Form No 209) If any person is appointed director of the company by the articles which are to be deli

Legal rights - Winding up: In substance these two people are really partners" and by analogy with the law of partnership (which permits dissolution if the partners are really

Act defined a traffic indication: However in EVANS v CROSS, Evans was charged by ignoring namely, a traffic sign, a white line painted in the middle of a road, whether overtak

(a)  In Malaysia, there are many sources of written and unwritten law. Discuss the sources of unwritten law.      (b)  What are the different methods used in interpretation of s

As part of this project, expert input was provided by employment law specialists Herbert Geer. Herbert Geer raised the possibility that the FWO could recover amounts lost by indivi

Define the term - bliss point A country's bliss point is the outcome of monetary growth rates that gives that country its highest possible level of welfare. The bliss point fo

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

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

Article 2 - State Responsibility Article 2 . This article lists down the elements of what constitute International wrongful act of a state. Means both wrongful acts and omissi