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I believe that, in the accompanying lecture, I actually place the liquidator and the fixed charge secured creditors as joint first.
It’s a practical issue and I did actually come across it twice in practice.
Picture the scene for yourself. There aren’t enough assets in the company being liquidated to pay off the fixed charge creditors in full. So what’s a liquidator to do? “Here you are you lucky fixed charge creditors. Please accept all the money that I have been able to recover from sale of the company’s assets. Now you all go away and enjoy your payout. Meanwhile, after I’ve done all the work involved in realising the sale of those assets, I’m expected to get zilch for my efforts?”
Ask yourself, why would a liquidator do all the work involved in a liquidation only to be faced with a zero return for those efforts?
On the first occasion that I came across it, a client of mine was facing liquidation (I had only been appointed as the company auditor the day before and I immediately persuaded them that to carry on would count as wrongful trading!)
I called the liquidation partner at the firm where I trained and set out the issue – ie there would be no assets to sell and therefore no money available to pay a liquidator. Mr Brierley actually thanked me for putting the work his way even knowing that there would be nothing in it for him nor the firm.
The second occasion was where I was in court taking legal action against my former business partner. I posed the same question to my forensic accountant, a qualified insolvency practitioner.
He came up with the same answer – “Why the creditors secured by fixed charge, of course.”
“OK” says I. “So if there aren’t enough assets to pay the secured creditors in full, does that therefore mean that the liquidator gets nothing?”
“Oh, NO!” says my forensic accountant. “Of course the liquidator would be paid”
Now, you tell me – who gets paid first out of the realised assets? I’m happy to leave them as equal firsts but, if really pushed to name just one, I believe that I would say that the liquidator will always rank number one, unless they happen to be called Mr Brierley, the insolvency partner at a large firm in Manchester.
OK?
If you are 100% certain that you will not work in UK as an auditor / accountant, then I suggest that Global Law would be your preferred option.
And, when you hit a problem in your Global Law studies, post on the Ask ACCA Tutor forum and I shall get back to you
OK?
Lectures and notes are all up to date. But you must also make extensive use of a revision kit. And also ask on this forum when you hit something that you don’t understand
OK?
Well! Thanks for this! And, perversely, you are correct – it is all pretty fascinating 🙂
Again, good fortune in the future – I’m sure my colleagues further ‘up the road’ will be at least equally helpful.
That’s great news, and thanks for letting me know.
Did you come across many differences and would you be able to fill in any gaps in my knowledge – should I ever be asked similar questions in the future 🙂
Best of luck with the remainder of your journey
Read the course notes. Read, don’t try to memorise. Just read as though they were a book. From start to finish they should take around 2 hours. You could do that every evening for a week!
Watch the videos and watch them as you follow in the notes the topic covered in the videos. Each video is around 30 – 40 minutes long. Can you watch 2 of those in an evening? And, if you have 2 hours spare in that evening, read the notes again.
Having watched some of the videos (say, 6) open your copy of a revision kit (this you MUST have – 20% discount off the price if you order a BPP text through this site – click on the yellow box).
Now attempt the questions in the revision kit chapters that cover the 6 chapters in the notes that you have just finished.
As time moves on, read more notes, watch more videos, and attempt more revision kit questions. Attempt these revision kit questions over and over and over again and again and again. You get the idea.
DON’T write your attempted answer in the Revision Kit itself. Write on a separate piece of paper. That way, not only will each attempt be uninfluenced by your previous efforts but you will also finish up with an unmarked book that you could then sell through the appropriate page on this site!
Read the notes, watch the videos, endless practice of Revision Kit questions. Then attempt 2 or 3 of the online mock exams.
And, when you hit a problem where you cannot understand something, post on this forum and I shall get back to you.
OK?
The aspect of wrongful trading was introduced because it was too onerous to establish the ‘intent’ element necessary for a successful fraudulent trading action.
It’s the ‘intent to defraud’ that marks fraudulent trading. Wrongful trading could just be the result of incompetence.
Is that better?
Yes, you got it!
Although ordinary business does not need any notice period, that business will be carried out at a general meeting and, of course, the meeting will need the appropriate days’ notice.
Only once did I ever see a Notice of Meeting that said, amongst everything else, ‘…and to discuss those other matters that may ordinarily be conducted at a general meeting as ordinary business’.
I was SO excited!!!
Until I read on where it then specified ‘That is, the appointment of directors retiring by rotation, the reappointment of the auditors after their year of office has expired, ….’
OK?
A jury is comprised of 12 people (the accused peers) to hear the facts of a criminal case and determine whether, beyond reasonable doubt, the accused is guilty of the offence of which s/he is charged.
Jurisdiction is the extent of the coverage of the judges before whom a case is to be heard
The judiciary is the element of the English law that governs the legality of the various actions that the citizens carry out (where there may be some doubt as to that legality)
A judge is the human that hears the evidence about a case and then advises the jury as to the ramifications from a legal point of view. The judge determines the law, the jury determines the facts.
A trial is the event, in Court, where an accused is given the opportunity to justify their actions which are being complained about by the police (criminal case) or a plaintiff (civil case)
Is that any better?
No worries – glad to help. And please make sure that you let me know how you go on next month
I should have said not to post on this forum – I don’t always look on ‘Latest Topics’ forum.
It would be safer for you to post on Ask ACCA Tutor Law Forum.
OK?
“I am thinking of giving this exam next month and I am really worried as this whole subject is based entirely on articles which are really hard to remember. Also do you have any tips how to remember the articles?”
Let me ask you … What are you gaining by worrying? Do you feel better? Is your worry preventing you from constructive studies?
From my own experiences, to worry is a distraction and is utterly unhelpful!
I’m not sure to what ‘articles’ you refer. The subject of law, whether it be English Law or Global Law, (or, indeed, any other variant) is VAST. So stop worrying about the sheer volume of the subject – you are NOT expected to know the entire World of Global Law and certainly not between now and next month!.
How to study? Constant repetition! Time and time again, go through the course notes, listen to the lectures. But, really importantly, practice, practice, practice questions from the revision kit. It’s a 2 hour journey simply to read (not try to learn, just read) the course notes. Where there’s a particular area in the notes that you’re not happy with, watch the associated video and see if I have explained it more fully.
But then, 3 x 1 hour each evening, practice answering questions from the revision kit. First time through, you may only be scoring in the high 20s / low 30s. But try those questions again 48 hours later and you should be scoring in the high 40s / low 50s. Another 48 hours, you’re realistically looking at high 60s / low 70s. Do you see the underlying trend? And, if there’s an answer that you cannot understand, post on this forum again, and I’ll get back to you.
Maybe do every 10th question from the revision kit. Take a 15 minute break after each hour. Don’t write your attempted answer in the revision kit itself – write on a separate piece of paper. And go over and over and over those revision kit questions.
And – whenever you hit a brick wall, post again on this forum and I shall get back to you.
OK?
You next asked –
“also I have a problem in companies limited by guarantee and limited by shares. Are they not the same? because shares are themselves a guarantee right?”
The short answer to this question is – No, they are not the same!
By a l o n g, l o n g, l o n g way, companies limited by shares outnumber companies limited by guarantee by a factor of thousands : 1. Companies limited by guarantee tend to be companies that are formed for “a good purpose”. Charities, companies promoting the arts, health, commerce, friendship, music and education (to name just a few) would sensibly be companies limited by guarantee. The members of such companies face no prospect of making any return on their interest – they cannot by law receive any dividends or capital distributions from the company. Their only liability is limited to the amount that they have individually guaranteed. Therefore, in the event of such a company declaring itself insolvent, a liquidator would be able to raise only such amounts from the members as those members have individually guaranteed. There is no purchase nor holding of shares by members in a company limited by guarantee.
Shares are NOT a guarantee! A share was historically defined as ‘a bundle of rights’ that entitled the share-holder to, for example, receive financial statements, attend, speak and vote at meetings, receive dividends and distributions on a liquidation – if there are surplus funds after ALL creditors’ claims have been settled. They are a form of gambling whereby the shareholder buys the investment and then hopes that the board of directors can use the aggregate of those investments to make the company prosper and grow. That way, the investors may be able to look forward to the possibility of selling their investment at a profit.
Hello Laiba
That’s a lot of questions that you have asked here! I’ll take them one at a time 🙂
“where does these notes are made from? are they made from bpp or from study hub? Because they are detailed and really helpful,”
Laiba – I wrote the notes. They were sourced out of my own knowledge of the law and heavily based on what the ACCA is looking for in the legal knowledge of an accountancy student. They are made from neither BPP nor from any study hub … but I’m pleased that you find them helpful.
Sayeda, thank you for taking the time to say thanks. And very many congratulations on your success in the law paper. Onwards and upwards – it will be over before you know it!
Best wishes for the future
Based purely on my own open admission of an ignorance of Scottish law, I imagine that I’m unlikely to be able to assist with any questions that you may have with legal issues North of the Border.
But, if you come across something that you don’t understand with reference to English Law (or Global Law) in your studies for the ACCA Law exam, please do not hesitate to post on this forum and I shall happily get back to you.
Well that’s a toughie! I’ve never ever been asked that before.
I really don’t know how accurate my next observation is … but I imagine that there’s not a whole lot of difference between English Law and Scottish Law. I do know that the law of property is different in Scotland when compared with English property law. But, having said that, there’s not a lot of emphasis on property law in the English syllabus.
On the strength of admittedly limited knowledge, I would suggest that English Law variant would be the choice for you.
I hope that helps
Because OpenTuition is entirely independent, concentrates on topics which are most likely to be examined, stays up-to-date with syllabus changes (syllables?) unlike printed text books, and has a track record of well-above-average success in all of the ACCA (and CIMA) papers for which we provide FREE tuition material.
(As well as providing the service of an ‘Ask ACCA Tutor’ forum (as well as the CIMA equivalent))
Is that enough for you?
That’s great, well done.
For any future posts, will you please restrict your postings to the relevant thread heading. For example, there can be no other student that is troubled by something in loan capital that is also at all interested in your exam result.
Different topic? Then a different thread.
But, well done again and well deserved.
Which other exams have you already passed?
The general advice from ACCA is to take the exams in their sequence ie take the next one that is listed after the law paper – so performance management and then taxation.
Hope that helps.
And don’t forget to let me know your law result!
No, but bear it in mind for your next post.
Is 5/6 of the contract price not ‘substantially all’? If not, what amount would qualify as ‘substantially all’ in your mind?
I think that the Court would look at option 3 and agree, yes, the cost of demolition and reconstruction would be grossly disproportionate to the loss of amenity involved so we’re not going to order going down that route. However, Athena has not been provided with the wall that she asked for so should be entitled to some compensation. Panagiotis has rendered substantial performance so is entitled to expect substantial payment. And Athena should not be expected to pay the full contract price.
I think that, because of option 3, the Court arrives at options 1 and 2.
OK?
