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Hello Mike.
For chapter 14 (liquidation), I can follow most of the notes except a few points that aren’t clear. May I ask you for one or two sentences to explain/expand upon the following?:
1. (point about liquidation:) “Voluntary may be members’ or creditors’…? Creditors can volunteer for a company’s liquidation?
2. (point about liquidation:) “Essential difference is solvency” …?
3. What is the fundamental difference between liquidator/liquidation and administrator/administration?
4. “The administrator can apply to court… ( if appointed by the court ) the administration has been successful”. Why would they do that?
Thank you very much.
sorry Mike, one more?
“But just and equitable only given in the absence of alternative remedy ( re A Company )”
?
“Creditors can volunteer for a company’s liquidation?”
No, but because the creditors are unlikely to be paid in full (because the company is insolvent) it’s the creditors that have the final say as to who shall be the liquidator
Just explained point 2
Ina liquidation, the company is doomed to die
In administration, the administrator tries to save the company
““The administrator can apply to court… ( if appointed by the court ) the administration has been successful”. Why would they do that?” – to formally finish the process of administration
““But just and equitable only given in the absence of alternative remedy ( re A Company )””
Just and equitable is the remedy available to the Court in the situation where no other remedy fits the circumstances but the plaintiff is clearly in the right
So the Court has made up this fail-safe fall-back option
OK?
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