LAWS2301 Study Guide - Final Guide: Insolvency, Secured Creditor, Debenture
Document Summary
S. 95a = definition of solvent if the person is able to pay all that person"s debts as, and when they fall due insolvent = not solvent = inability to pay debts as they fall due. Purpose of insolvency law provisions = to deal with what happens if company becomes insolvent corporate insolvency is regulated by the external administration provisions of chap 5 of the ca. Person who is appointed to collect and receive debts and other property belonging to the insolvent. S. 619, s. 1323 can be appointed by secured creditors, by the court/asic. Notice of appointment must be served on asic s. 427, s. 429. Open and maintain an account and pay companies money into that account. S. 423 court has power to make a determination whether receiver has performed their functions faithfully or is performing them faithfully. S. 419 liable for debts for services rendered, goods purchased, or property hired, leased used or occupied but without prejudice to rights against company.
