William Is the Sole Shareholder and Director of Blackstone Inc

Multiple Choice

William is the sole shareholder and director of Blackstone Inc, which was created under the Canada Business Corporations Act.The company employs ten people.Unfortunately, as a result of losing a major account, the company has become insolvent.Its secured creditors are threatening to take action and its unsecured creditors are very anxious.William believes that Blackstone will become profitable again, but only if he is given a chance to perform for its current customers and find new ones.Which of the following statements is most likely to be TRUE?

A) Blackstone cannot use the Winding-Up Act because it is a federally incorporated company.
B) If Blackstone becomes bankrupt, William may be personally liable to pay the company's employees their unpaid wages.
C) Blackstone is entitled to use the Companies' Creditors Arrangement Act only if its debts are less than $5 000 000.
D) It is highly unlikely that Blackstone will seek protection under the Companies' Creditors Arrangement Act because that statute's procedures are rigid and inflexible.
E) Because Blackstone was incorporated under a federal statute, its employees have no special rights if the company becomes bankrupt.