Difference fixed and floating charge, Business Law and Ethics

Assignment Help:

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.

 

 


Related Discussions:- Difference fixed and floating charge

Minimum subscription - commencement of business, Minimum subscription - Com...

Minimum subscription - Commencement of business: If the minimum subscription was not raised the company can only commence business or exercise borrowing powers if:- a)

Members voluntary winding up, Members voluntary winding up: In a membe...

Members voluntary winding up: In a members' voluntary winding up the creditors play no part since the assumption is that their debts will be paid in full.  There is no committ

Disadvantages of subsidiary legislation, DISADVANTAGES: Whether delega...

DISADVANTAGES: Whether delegated or subsidiary legislation has been criticised just to a variety of reasons, the main ones being that it is:as; (a)   Less democratic Whe

Judicial elucidation of acts, Judicial elucidation of Acts: In fact th...

Judicial elucidation of Acts: In fact the other points to be noted in relation to judicial elucidation of Acts are as follows: like; (a)   There is no clause of an Act is t

What is the way of acquiring rights over a territory, What is the way of ac...

What is the way of acquiring rights over a territory The way of acquiring rights over a territory is adjudication . It is a process in which the States consult an internation

Business Ethics, As organisations affect many people, they have obligations...

As organisations affect many people, they have obligations to their employees, consumers, community and the world. They have a responsibility to conduct business in a way that is n

Types of subsidiary legislation, TYPES OF SUBSIDIARY LEGISLATION: Howe...

TYPES OF SUBSIDIARY LEGISLATION: However the definition of subsidiary legislation in s.2 of the Interpretation and General Provisions Act reflects the great variety of nomencl

Removal - powers of managing director, Removal:             Article 10...

Removal:             Article 107 provides that the managing director's "appointment shall be automatically determined if he cease from any cause to be a director". However it

Explain responsibility of the state under international law, Explain respon...

Explain responsibility of the state under International law State responsibility upon a state and holding it responsible for a violation of an international law, the element of

Exercising international rights and duties, Q. Exercising international rig...

Q. Exercising international rights and duties? Laws are the finest creation of human mind. They are intended not only to regulate our conduct and therefore our lives, but they

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd