Management and Organizational Studies 2275A/B Chapter Notes - Chapter 27: Unsecured Creditor, Secured Creditor, Fraudulent Conveyance

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Fail even when economy is strong poor management, lack of adequate financing, death or illness of a principal, fraud, and other reasons. Strong companies still at risk during economic downturn. Business failure affects many people other than business itself. Two primary pieces of legislation in canada are the bankruptcy and. Insolvency act (bia) and the companies" creditors arrangement act (ccaa) Might first try to solve financial problems by negotiating a settlement. The more creditors they have, less likely to reach a settlement. Key is ensuring all creditors are in agreement will agree if they believe it will produce better results than legal proceedings or bankruptcy. Serious financial trouble not a viable option. Should seek advice from lawyer or accountant to understand options. If decide bankruptcy is the best option, will need services of a trustee in bankruptcy the person who has legal responsibility under the bia for administering bankruptcies and proposals.