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

General principles of calls on contributories, General principles of Calls ...

General principles of Calls on contributories: If it is necessary to make calls on contributories the liquidator draws up a list "A" of contributories who were members at th

Corporate law, XYZ Ltd has 1000 members and it has adopted a constitution. ...

XYZ Ltd has 1000 members and it has adopted a constitution. Matt is one of the directors of XYZ Ltd. Matt has made a gift of $10,000 to his wife, Melissa out of the Company's funds

Analyse the extent of the criminal liability, One night Mr Kokintou and Ms ...

One night Mr Kokintou and Ms Mangetou, entered into a housethrough a window which was negligently left open by the owner of the house.  Whilst Ms Mangetou was keeping guard at the

Change of name - name clause, Change of Name: A company's name may be ...

Change of Name: A company's name may be changed voluntarily or compulsorily (a)   Voluntary Change A company's name may be changed voluntarily: i. Under s.2.1 if a sp

What is the use of reprisal, What is the use of reprisal the use of rep...

What is the use of reprisal the use of reprisal should also be categorized under the heading of the lawful use of force. It is defined as a counter action taken by a state to p

Compensation for loss of office - company management, Compensation for Loss...

Compensation for Loss of Office: (a) Section 192 makes it unlawful for a company to make a director any payment by way of compensation for loss of office, or  may as considera

Powers of arbitral tribunal, Powers of Arbitral Tribunal Powers of Arb...

Powers of Arbitral Tribunal Powers of Arbitral Tribunal are as Follow: For determine whether it has jurisdiction to entertain a dispute and For provide interim reme

What has been the evolution of the concept of corporate, QUESTION 1 The...

QUESTION 1 The doctrine laid down in Salomon v Salomon & Co. Ltd has to be watched very carefully. The Courts can and often do draw aside the veil. Discuss QUESTION 2 (

Explain unsc resolution 1624 and when it is passed, Explain UNSC Resolutio...

Explain UNSC Resolution 1624  and when it is passed The most-recent such resolution is UNSC Resolution 1624 passed in the year 2005. It states: "1. Calls upon all States to

State the definition of equilibrium, State the Definition of equilibrium ...

State the Definition of equilibrium The approach of equilibrium refinements aims at strengthening the definition of equilibrium itself in order to purge others out as possible

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