TUESDAY: 5 April 2022. Afternoon paper. Time Allowed: 3 hours.
Answer ALL questions. Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper.
QUESTION ONE
1. Explain the following terms:
Arbitration agreement. (2 marks)
Arbitral award. (2 marks)
Arbitral tribunal. (2 marks)
2. The Auctioneers Board shall keep a register, in such form as it may determine, of all licences issued. With reference to the above statement, list four particulars of the register of licenses that the Auctioneers Board is required to keep. (4 marks)
3. With reference to the United Nations Commission on International Trade Law (UNCITRAL) recommendations, summarise five purposes of legislative provisions with regard to treatment of creditors. (5 marks)
4. In relation to mediation in Kenya, enumerate five members of the Mediation Accreditation Committee. (5 marks)
(Total: 20 marks)
QUESTION TWO
1. In relation to dissolution of partnerships, analyse five powers of the court upon hearing an application for an administration order. (5 marks)
2. Effective insolvency law systems have a number of objectives.
With reference to the above statement, explain eight objectives that insolvency law systems should aspire to attain (8 marks)
3. Describe seven persons who might make an application to the court challenging the decision taken at the creditors’ meeting on the ground that the debtor’s proposal that was approved at the meeting unfairly affects the interests of the debtor’s creditors. (7 marks)
(Total: 20 marks)
QUESTION THREE
1. With reference to the criteria for entry to no-asset procedure, analyse three duties of a debtor after entry to no-asset procedure. (6 marks)
2. List four contents of court warrant or letter of instruction in each of the cases below:
Movable property. (4 marks)
Immovable property. (4 marks)
3. Examine three demerits of carrying out the threat of bankruptcy on a creditor. (6 marks)
(Total: 20 marks)
QUESTION FOUR
1. The insolvency law should clearly specify the debtor’s obligations in respect of insolvency proceedings. Those obligations should arise on the commencement of, and continue throughout those proceedings. With reference to the above statement, discuss four obligations of the debtor in respect of insolvency proceedings. (8 marks)
2. With reference to insolvency proceedings:
Outline two rights of the creditors’ committee. (2 marks)
Summarise three functions of the creditors committee. (3 marks)
3. Highlight seven circumstances where an arbitral award may be set aside by the High Court. (7 marks)
(Total: 20 marks)
QUESTION FIVE
1. Outline four circumstances when the Official Receiver may revoke an authorisation granted to act as an insolvency practitioner. (4 marks)
2. Explain four distinctions between “Arbitration” and “Conciliation” as legal methods of resolving disputes. (8 marks)
3. In relation to bankruptcy proceedings, summarise three classes of properties that a bankrupt can retain as personal property. (3 marks)
4. Enumerate five circumstances that necessitated the development of model law on cross-border insolvency. (5 marks)
(Total: 20 marks)
