TUESDAY: 5 December 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. With reference to Corporate Insolvency Act, explain the following terms:
Fraudulent trading. (2 marks)
Wrongful trading. (2 marks)
2. Assess FOUR benefits of filing bankruptcy proceedings in the insolvency of natural persons. (8 marks)
3. Summarise EIGHT steps of the liquidation of a company by court. (8 marks)
(Total: 20 marks)
QUESTION TWO
1. With reference to cross-border insolvencies as provided for under the United Nations Commission on International Trade Law (UNCITRAL):
Explain the “Hotchpot rule”. (2 marks)
Describe FOUR functions of the UNCITRAL Model Law on Cross-Border Insolvency. (4 marks)
2. Maji Mazuri Enterprises, a Limited Liability Partnership has hired a new administration manager who is urgently required to file annual returns with the Registrar of Companies.
Required:
Advise Maji Mazuri on the SIX contents of an annual return. (6 marks)
3. Examine FOUR provisions governing termination of an arbitrator on account of failure or impossibility to act upon his appointment. (8 marks)
(Total: 20 marks)
QUESTION THREE
1. State FOUR parties who can petition for a compulsory liquidation. (4 marks)
2. Describe THREE jurisdictions of magistrate with regard to the Debt (Summary recovery) Act, Cap 42. (6 marks)
3. Describe THREE types of liquidation. (6 marks)
4. With reference to the Auctioneers Act, outline FOUR responsibilities of an auctioneer on the seized goods. (4 marks)
(Total: 20 marks)
QUESTION FOUR
1. Enumerate FIVE contents of the bankrupt’s statement of financial position lodged with the official receiver. (5 marks)
2. Explain the SEVEN steps procedure for creditors’ voluntary liquidation. (7 marks)
3. Propose FOUR ways of releasing a liquidator from liquidator’s obligations. (8 marks)
(Total: 20 marks)
QUESTION FIVE
1. Outline FOUR criteria for entry to the no-asset procedure with regard to the Insolvency Act, 2015. (4 marks)
2. State FOUR forms of arbitration agreement. (4 marks)
3. On commencement of liquidation of a limited liability partnership, custody and control of partnership property rests in the liquidator.
Summarise SIX powers conferred upon the liquidator to facilitate an effective liquidation process. (6 marks)
4. Assess SIX properties not liable to attachment by the auctioneer during the auction process. (6 marks)
(Total: 20 marks)
