TUESDAY: 22 August 2023. 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 as used in debt recovery management:
Operational creditor. (2 marks)
Consumer arbitration. (2 marks)
2. Describe FOUR steps to be taken in making an application for recognition of a foreign proceeding in cross border insolvency. (8 marks)
3. Evaluate FOUR steps for voluntarily liquidation of a company by members or creditors. (8 marks)
(Total: 20 marks)
QUESTION TWO
1. With reference to section 59A of Civil Procedures Act on arbitration, state SIX functions of the mediation accreditation committee. (6 marks)
2. Enumerate SIX characteristics of corporations. (6 marks)
3. Describe FOUR consequences of being adjudged bankrupt. (8 marks)
(Total: 20 marks)
QUESTION THREE
1. State FOUR considerations that a court might take into account when making an order to remove a partner from a partnership. (4 marks)
2. A judgement has been entered against John Kanyi for failure to pay a debt owed to Malimali Ltd. Consequently, an attachment order has been obtained by Kali Auctioneers who have advertised his properties for sale by auction.
Required:
Advise John Kanyi on the EIGHT steps that would be followed by Kali Auctioneers in the auctioning process. (8 marks)
3. Assess FOUR circumstances under which a company’s property becomes divisible among its creditors. (8 marks)
(Total: 20 marks)
QUESTION FOUR
1. Analyse THREE provisions governing the contribution of capital by partners in a partnership. (6 marks)
2. Analyse SIX responsibilities of a conciliator in the resolution of business disputes. (6 marks)
3. With reference to insolvency of natural persons under the Insolvency Act 2015, describe the process of bankruptcy proceedings and the three alternatives to bankruptcy that are available for utility by financially distressed debtors. (8 marks)
(Total: 20 marks)
QUESTION FIVE
1. Explain FOUR reasons for revoking an auctioneers’ licence. (4 marks)
2. Transnational Company Ltd. has been declared insolvent. An official receiver has been appointed and has called for a creditors’ meeting on 30 September 2023. Kalama Zoo Ltd., one of the creditors in the insolvency proceedings will not be able to attend the meeting.
Required:
Advise Kalama Zoo Ltd. on the SIX persons that may be appointed to represent them at the creditors’ meeting. (6 marks)
3. Discuss FIVE provisions governing the rights to appeal against refusal to act as an official receiver. (10 marks)
(Total: 20 marks)
