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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 ¬Ę Receivership - way for secured creditor to get 2 their money back ¬Ę Voluntary administration - temporary safety zone from company‚Äôs creditors, and possibly a chance to trade out of difficulties ¬Ę Winding up - liquidator sells off company‚Äôs assets and distributes proceeds to creditors Receivership ¬° What is a receiver? ¬Ę Person appointed to take control of some or all of a company‚Äôs assets 3 ¬° Who is allowed to be appointed? ¬Ę A registered liquidator ¬° Who may appoint a receiver? ¬Ę Court ¬Ę Secured creditor Function of the receiver ¬° Broadly, where appointed under a charge (i.e., by a secured creditor), receiver‚Äôs 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‚Äôs powers: ¬Ę s 420 HRS p512 ¬Ę Instrument of charge 5 ¬Ę 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 ¬Ę Fiduciary duties 6 ¬Ę Fiduciary duties ¬Ę Duties as ‚Äúofficer‚ÄĚ ‚Äď s 180, 181, 182, 183 ¬° Duties in relation to sale of assets ¬Ę General law and s 420A HRS p513 2 Voluntary administration ¬° Goal of the VA provisions‚Äďs 435A(HRS 516): ¬Ę Maximise chance of company continuing in 7 business, or ¬Ę If that not possible, provide a mechanism for creditors and members to get a better return than from a winding up ¬Ę Some evidence of success How is goal achieved?...
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- Three '08
- Bankruptcy, administrator, creditors, Insolvency law, Unsecured Creditors