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

Discuss the anti-money laundering act 2002, QUESTION 1 Mr. Smith is goi...

QUESTION 1 Mr. Smith is going for his driving test at the Traffic Branch of the police force in Port- Louis. On his arrival, he approaches Police Constable Edouard to facilitat

Protection of creditors - function of the court, PROTECTION OF CREDITORS: ...

PROTECTION OF CREDITORS: Where the reduction of capital involves diminution of unpaid capital or repayment to shareholders of paid-up capital, creditors have a statutory right

Theories of international antitrust coordination, Theories of international...

Theories of international antitrust coordination We have come across various policy coordinations and adjustments but still there are other spheres of affairs where direct poli

Policies which reduce energy supplies, 1. Indicate whether the following st...

1. Indicate whether the following statements are true or false and briefly explain your answer. a. Actions by government to increase spending and by the central bank to increase

Complaints made against the auditors, Complaints made against the auditors:...

Complaints made against the auditors: These are the most simple principles that such have to be applied to cases of this description. I protest, however, against the notion

Purpose and advantage of monitoring, Explain what are the primary & seconda...

Explain what are the primary & secondary sources of information that you can use to conduct your research. If it is primary/secondary, or both state reasons for your answer.

Group accounts, Group Accounts: S.150(1) provides that if, at the end ...

Group Accounts: S.150(1) provides that if, at the end of its financial year, a company has subsidiaries, then it must include in its annual accounts "group accounts" dealing w

Register of directors shareholdings, Register of Directors' Shareholdings: ...

Register of Directors' Shareholdings: Section 196(1) requires every company to keep a register showing the number, description and amount of any shares or debentures which are

Discuss how the law deals with computer crime, Question 1: (a) A contra...

Question 1: (a) A contract is valid as soon as the parties agree on its terms. According to you, is this statement correct? Justify your answer with the relevant enactment/cas

Amount of compensation payable, Amount of compensation payable: In CLA...

Amount of compensation payable: In CLARK V URQUHART (44) the court explained that the amount of compensation payable under S.45 of the Act is calculated or measured in the sam

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