Chapter 23 Self-test Questions

Liquidation, dissolution, and restoration

Quiz Content

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. What is the difference between a members' voluntary winding up and a creditors' voluntary winding up?

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. Who can petition the court for a winding up order?

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. Most compulsory winding up orders are made on the basis of which ground?

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. Identify which of the following assets are outside the liquidator's control.

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. Which one of the following sets out the correct order of distribution of assets upon liquidation?

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. Dragon Tools goes into liquidation. Once higher-ranking debts have been paid off, there is £25,000 available to pay off the debts secured by floating charge. How much of this must be set aside to pay off unsecured creditors?

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. How does fraudulent trading under the Companies Act 2006 differ to fraudulent trading under the Insolvency Act 1986?

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. Wrongful trading will only occur where, prior to the commencement of a winding up, the director knew that there was no reasonable prospect of the company avoiding insolvent liquidation.

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. In October 2017, the directors of Dragon plc cause the company to grant a floating charge to Nikki, a shadow director of Dragon plc. In March 2019, the company enters insolvent liquidation. Can the floating charge be avoided?

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. The process by which a company's existence is brought to an end is known as?

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