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

International competition law, International Competition Law -  Select...

International Competition Law -  Select a specific industry or corporation and analyse the factors that determine a competitive or anticompetitive outcome; - Factors such a

Fraudulent trading, Fraudulent Trading: Section 323 provides that if, ...

Fraudulent Trading: Section 323 provides that if, in the course of the  winding up of a company, it appears that any business of the company has been carried on with intent to

Determine the term uncertainty - policy process, Determine the term Uncerta...

Determine the term Uncertainty - Policy process We know that uncertainty is one of main influencing factor in policy process and especially in coordination of economic policies

Political and education function of chief justice, Political and Education ...

Political and Education function of Chief Justice Political Function Moreover the chief justice administers the presidential oath for the person who is elected like pre

What is the effect of smuggling and distribution of drugs, What is the effe...

What is the effect of smuggling and distribution of drugs International Criminal Law does not refer to the traditional crimes like murder and theft. A crime of an international

Determine the schemes of michael mandelbaum, Determine the schemes of Micha...

Determine the schemes of Michael Mandelbaum Michael Mandelbaum has offered a two fold scheme, the inside-out and outside-in approach. According to inside-out approach, a natio

Write short notes on the litteral rule, QUESTION (i) Write on the healt...

QUESTION (i) Write on the health and safety issues in the hospitality industry (ii) Describe the hierarchy of courts in Mauritius and explain what you understand by the doct

Successfully sue michael in negligence, It was late at night and very wet a...

It was late at night and very wet and, rather than wait for a taxi to take her home, Anna was only to happy to accept a lift from Michael. He smelt strongly of alcohol and had trou

State the two alternatives of policy clustering, State the two alternatives...

State the two alternatives of Policy Clustering That combines an element from each of these first two alternatives. One might think of it as a set of processes characterized by

Self-control in entrepreneurship development, Self-Control : Most entrepre...

Self-Control : Most entrepreneurs believe they can do the job better than anyone else and will strive for maximum responsibility and accountability. An entrepreneur needs to maint

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