SS Lecture 11 - 1 SS Lecture 11 Overview External...

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Unformatted text preview: 1 SS Lecture 11 Overview ¡ External administration o/view ¶25-001 ¡ Receivership ¶25-100-¶25-160 ¡ Voluntary administration ¶25 200 ¶25 370 1 ¡ Voluntary administration ¶25-200-¶25-370 ¡ Winding up ¶26-100-¶26-190 ¡ Deregistration ¶26-200-¶26-230 External administration overview ¡ Three types of external administration serve different purposes ¢ Receivership - way for secured creditor to get 2 their money back ¢ Voluntary administration - temporary safety zone from company’s creditors, and possibly a chance to trade out of difficulties ¢ Winding up - liquidator sells off company’s assets and distributes proceeds to creditors Receivership ¡ What is a receiver? ¢ Person appointed to take control of some or all of a company’s assets 3 ¡ Who is allowed to be appointed? ¢ A registered liquidator ¡ Who may appoint a receiver? ¢ Court ¢ Secured creditor Function of the receiver ¡ Broadly, where appointed under a charge (i.e., by a secured creditor), receiver’s function is to collect the property secured 4 by the charge, sell it and distribute the proceeds to the chargee (i.e., the secured creditor) ¡ Receiver is an agent of the company Powers and liabilities of receivers ¡ Sources of receiver’s powers: ¢ s 420 HRS p512 ¢ Instrument of charge 5 ¢ Instrument of charge ¡ Has various types of liability ¡ Indemnity routinely obtained from appointer Duties of receivers ¡ Receiver owes duties to the appointer ¡ Also owes duties to the company ¢ Fiduciary duties 6 ¢ Fiduciary duties ¢ Duties as “officer” – s 180, 181, 182, 183 ¡ Duties in relation to sale of assets ¢ General law and s 420A HRS p513 2 Voluntary administration ¡ Goal of the VA provisions–s 435A(HRS 516): ¢ Maximise chance of company continuing in 7 business, or ¢ If that not possible, provide a mechanism for creditors and members to get a better return than from a winding up ¢ Some evidence of success How is goal achieved?...
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SS Lecture 11 - 1 SS Lecture 11 Overview External...

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