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Which of the Following Would Not Be a Motivation for Directors

Question 16

Multiple Choice

Which of the following would not be a motivation for directors to appoint a voluntary administrator.


A) The company is insolvent or nearing insolvency and the directors are desirous of avoiding liability under section 588G of the Corporations Act 2001 (Cth) ;
B) The directors are attempting to prevent creditors from enforcing guarantees which have been provided by the directors;
C) The liquidator wants to have a deed of company arrangement with the company's creditors;
D) The directors want to freeze outstanding litigation so they can deal with the company's property and exercise their powers as directors without the distraction of the litigation;
E) All the above would be possible motivations for directors to appoint a voluntary administrator to a company.

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