Deck 13: Receivership and Voluntary Administration

Question 1

The terms 'controller' and 'receiver and manager' are both used in the Corporations Act:

A)but only receiver and manger is relevant to external administration
B)controllership is narrower concept than receiver and manger
C)controllership is wider concept than receiver and manger
D)they have the same meaning

Answer 1

C

Question 2

For a company that is likely to be liquidated, a voluntary administration is mainly designed to:

A)provide the best return to shareholders
B)provide the best return to creditors
C)ensure the company continues as a going concern
D)protect the interests of management

Answer 2

B

Question 3

Which of the following would not normally be included in a deed of arrangement:

A)company property to be made available to pay the creditors
B)a listing of the shareholders of the company bound by the deed
C)circumstances in which the deed is to terminate
D)the name of the deed administrator

Answer 3

B

Question 4

A receiver is always appointed under a deed of arrangement.

Question 5

The adopting of a deed of arrangement is the possible outcome of:

A)a receivership of company assets
B)a decision to undertake a voluntary liquidation
C)voluntary administration
D)a decision to liquidate instigated by creditors

Question 6

A receiver must be a registered company liquidator.

Question 7

Which of the following cannot instigate a voluntary administration:

A)a liquidator
B)a person who can appoint a receiver for more than 30% of the company's assets
C)a person who can appoint a receiver for all or most of the company's assets
D)the companys' directors

Question 8

Which of the following are legitimate reasons for a company to be liquidated?
I)Because the company is expected to fail
II)Because it is believed that the directors are abusing their power
III)Because the shareholders want their capital returned

A)I only
B)II and III only
C)I and III only
D)I, II and III

Question 9

A company's auditor can act as a receiver for the companies property.

Question 10

Which of the following is either a power or a function of a receiver:
Ito take possession of designated company assets
IIto instigate action to recover any shortfall from the directors
IIIto collect revenue generated by the assets and meet expenses in generating the revenue
IVTo do all things necessary to protect the property

A)each of I, II, III and IV
B)III and IV only
C)I, II, and III only
D)I, III and IV only

Question 11

The appointment of a receiver invariably results in the dissolution of the company.

Question 12

The director's powers cease and are not returned to the directors under a:

A)Voluntary administration
B)Receivership
C)Liquidation
D)External administration

Question 13

Which of the following appointments normally has power over the company's operations?
I)Receiver
II)Receiver and Manager
III)Liquidator

A)I only
B)II only
C)II and III only
D)I, II and III

Question 14

There is no disclosure of the fact that a company is under external administration.

Question 15

In which of the following ways can a receiver be appointed?
I)by special resolution of the shareholders
II)by a court order
III)by a lender under the terms of a debt contract
IV)by an ordinary resolution of the shareholders

A)II and III only
B)I only
C)I, II and III only
D)I, II, III and IV