Unsecured ordinary debts, Business Law and Ethics

Assignment Help:

UNSECURED ORDINARY DEBTS:

A secured creditor obtains payment (to the extent that his security is adequate i.e. if it exceeds in value the amount owing to him) because he has a valid prior claim to that security. Unsecured creditors are paid out of the remaining assets, i.e. the aggregate of:

(a)any surplus value obtained by secured creditors in realising the assets which are their security and paid over to the liquidator, and

(b)any assets which are not subject to charges given to secured creditors.
But two special claims have to be given their due priority, i.e.

(a)costs of winding up including the legal expemses and liquidator's remineration, and

(b)preferential unsecured debts.


Related Discussions:- Unsecured ordinary debts

Government estimate of the number of phoenix operators, Former Assistant Tr...

Former Assistant Treasurer Bill Shorten has cited estimates, based on ATO expertise, that there are 6,000 phoenix operators in Australia. It is recognised that this estimate is a ‘

Compulsory winding up, Compulsory winding up: At the hearing other cre...

Compulsory winding up: At the hearing other creditors of the company may oppose the petition.  If so, the court is likely to decide in favour of those to whom the larger amoun

Describe in detail about the term - policy makers, Describe in detail abou...

Describe in detail about the - policy makers Elections are used to choose the policy makers, it is not the only mechanism. Since the authority to make decisions may be vested i

Labour and employment law , You are the HR manager of a large manufacturing...

You are the HR manager of a large manufacturing company which employs both unionized and non-unionized employees. You have a non-unionized employee, Edith, who has worked for the c

Problem question, how do i answer a problem question in law base on the law...

how do i answer a problem question in law base on the law of contract for final assesment

Registration procedures, Registration Procedures: The procedures to be...

Registration Procedures: The procedures to be followed by persons who intend to form a registered company will depend on whether the proposed company is to be a public company

Paralegal, Is there a demand for paralegals in the blackbelt area of alabam...

Is there a demand for paralegals in the blackbelt area of alabama

Financial year of holding company and subsidiary, Financial Year of Holding...

Financial Year of Holding Company and Subsidiary: S.153(1) provides that a holding company's directors shall ensure that, except where in their opinion there are good reasons

Decisions for operating a business, When operating a business, an owner has...

When operating a business, an owner has to make numerous decisions on a daily basis. In some cases, a decision may increase profits, but the owner is uncomfortable making such a de

Liability of incoming partners and death of a partner, Liability of Incomin...

Liability of Incoming Partners and Death of a Partner Liability of Incoming Partners However Unless a new partner makes a individual agreement to the effect such he wil

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