Order of application of assets, Business Law and Ethics

Assignment Help:

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.


Related Discussions:- Order of application of assets

State article 9 of air and outer space law, State Article 9 of air and oute...

State Article 9 of air and outer space law Article 9 states that each contracting State may, for reasons of military necessity or public safety, restrict or prohibit uniformly

List eight main objectives of tax treaties, QUESTION (a) List eight mai...

QUESTION (a) List eight main objectives of tax treaties (b) Explain carefully how cases of dual residence for both individuals and companies would be resolved by the applica

Ethics, Assignments should be submitted on or before the due date. Zero mar...

Assignments should be submitted on or before the due date. Zero mark will follow late submission of an assignment unless you have an acceptable reason approved by the instructor.

Plan the disciplinary interview, Question: You are the manager of a res...

Question: You are the manager of a restaurant and receive a letter from a customer complaining about the quality of service and the rudeness of one member of your staff. You ha

Determine the areas of open method of coordination, Determine the areas of ...

Determine the areas of open method of coordination The EU has indicated its intention to employ the OMC, but so far there is little evidence of progress. These areas include E

What do you mean by garnishee orders, Q. What do you mean by Garnishee Orde...

Q. What do you mean by Garnishee Orders? The ATO has the power to issue garnishee orders which allow recovery of debts from a person's bank account, wage or from people who owe

Analyse and discuss to minority shareholders, "Within a company there are m...

"Within a company there are many areas of potential disagreement among members. As the range of potential disagreement is very broad, so also is the scope for exploitation and abus

State about the security council of united nations, State about the Securit...

State about the Security Council of United Nations? The Security Council: The Security Council has main responsibility for the preservation of international peace and sec

Statutory corporation and chartered corporation, Statutory Corporation a...

Statutory Corporation and Chartered Corporation Statutory Corporation However this is created through an Act of Parliament and comes in existence from the date of c

State international humanitarian law, Normal 0 false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

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