TUESDAY: 2 August 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:
Bankruptcy trustee. (2 marks)
Preferential debts. (2 marks)
2. Summarise two circumstances under which the court may refuse to adjudge a debtor bankrupt. (4 marks)
3. The insolvency regulations may fix or prescribe the amount or rates of fees chargeable.
With reference to the above statement, outline four criteria used to determine the rates charged by receivers. (4 marks)
4. Assess four purposes of granting an administration order to a corporate. (8 marks)
(Total: 20 marks)
QUESTION TWO
1. With reference to United Nations Commission on International Trade Law (UNCITRAL):
Explain three methods of appointing insolvency representatives. (3 marks)
Outline three characteristics of bodies responsible for regulating insolvency representatives. (3 marks)
2. Analyse six benefits of selling at the auction. (6 marks)
3. With reference to dissolution of a partnership, discuss four powers of a liquidator. (8 marks)
(Total: 20 marks)
QUESTION THREE
1. Secured creditors are paid out of the proceeds of their security. Apart from this, available funds are applied to the rest.
With reference to the above statement, list the order of application of the surplus. (6 marks)
2. Discuss four conditions under which an arbitral award may be set aside by the High Court. (8 marks)
3. List six characteristics of a partnership. (6 marks)
(Total: 20 marks)
QUESTION FOUR
1. With reference to a Summary Instalments Order (SIO), explain four responsibilities of the person seeking more time to settle their debts. (4 marks)
2. Enumerate four contents of the statement of application for partnership insolvency. (4 marks)
3. Explain three requirements for appointment as an insolvency practitioner. (3 marks)
Outline three circumstances under which a natural person may be disqualified from acting as an insolvency practitioner. (3 marks)
4. Examine three grounds for application of liquidation of company on public interest. (6 marks)
(Total: 20 marks)
QUESTION FIVE
1. Differentiate between member’s liquidation and creditor’s liquidation. (4 marks)
2. Enumerate three circumstances in which an unregistered company can be liquidated. (3 marks)
3. Identify five parties who may make an application to the court for an administration order in respect of a company. (5 marks)
4. Discuss four provisions of liability contributions of present and former members toward payment of debts and expenses of liquidation. (8 marks)
(Total: 20 marks)
