Podcast
Questions and Answers
What is the relevant time period for unrelated transactions under Section 226 of the IRDA?
What is the relevant time period for unrelated transactions under Section 226 of the IRDA?
- 2 years
- 6 months
- 3 years
- 1 year (correct)
Under which condition can a court restore a transaction as if it had not been entered into according to Section 224 of the IRDA?
Under which condition can a court restore a transaction as if it had not been entered into according to Section 224 of the IRDA?
- When a company is in liquidation
- When a company is in judicial management or winding up (correct)
- When the company can pay its debts
- When the transaction involves a connected person
What must be established for a transaction at an undervalue (TUV) under Section 225 of the IRDA?
What must be established for a transaction at an undervalue (TUV) under Section 225 of the IRDA?
- The transaction had no consideration whatsoever
- The transaction occurred without any parties involved
- The transaction was purely a commercial agreement
- The transaction was influenced by a desire to prefer the other party (correct)
Which section provides for the presumption of being influenced by a desire to prefer in cases of unfair or undue preference?
Which section provides for the presumption of being influenced by a desire to prefer in cases of unfair or undue preference?
What defense is available under Section 224 of the IRDA regarding unfair or undue preference?
What defense is available under Section 224 of the IRDA regarding unfair or undue preference?
What is the prescribed limit for initiating a bankruptcy application under the IRDA?
What is the prescribed limit for initiating a bankruptcy application under the IRDA?
Which section of the IRDA discusses the presumption of inability to pay debts?
Which section of the IRDA discusses the presumption of inability to pay debts?
Who has the mandatory role in bankruptcy administration as per the IRDA?
Who has the mandatory role in bankruptcy administration as per the IRDA?
Under which section can a bankrupt not leave Singapore according to the IRDA?
Under which section can a bankrupt not leave Singapore according to the IRDA?
Which of the following actions can lead to the annulment of bankruptcy?
Which of the following actions can lead to the annulment of bankruptcy?
What is the consequence of a discharge from bankruptcy according to Section 397 of the IRDA?
What is the consequence of a discharge from bankruptcy according to Section 397 of the IRDA?
What is required from a bankrupt under Section 332(1) of the IRDA?
What is required from a bankrupt under Section 332(1) of the IRDA?
Which regulation states the prescribed limit for the Debt Repayment Scheme?
Which regulation states the prescribed limit for the Debt Repayment Scheme?
What is the consequence of a court finding that a company has traded wrongfully?
What is the consequence of a court finding that a company has traded wrongfully?
Under which section may a court relieve a person from personal liability?
Under which section may a court relieve a person from personal liability?
Which of the following is NOT a condition for personal liability under S 239(1) IRDA?
Which of the following is NOT a condition for personal liability under S 239(1) IRDA?
Who can apply for the court to declare personal responsibility in the case of wrongful trading?
Who can apply for the court to declare personal responsibility in the case of wrongful trading?
What aspect of liability is addressed by S 239(2) IRDA?
What aspect of liability is addressed by S 239(2) IRDA?
Under which section of the IRDA is the requirement for a company to prove it has a reasonable prospect to avoid wrongful trading?
Under which section of the IRDA is the requirement for a company to prove it has a reasonable prospect to avoid wrongful trading?
What is the purpose of section 225(5) of the IRDA concerning presumption related to connected persons?
What is the purpose of section 225(5) of the IRDA concerning presumption related to connected persons?
What must be proven for a company to be responsible for fraudulent trading as outlined in section 238 of the IRDA?
What must be proven for a company to be responsible for fraudulent trading as outlined in section 238 of the IRDA?
Which section of the IRDA specifies that a court may reverse a transaction by discharging a legal mortgage?
Which section of the IRDA specifies that a court may reverse a transaction by discharging a legal mortgage?
What is the significance of section 226(1)(a) in relation to the timing of a transaction?
What is the significance of section 226(1)(a) in relation to the timing of a transaction?
Which of the following scenarios indicates that a company is engaging in wrongful trading according to section 239(12) of the IRDA?
Which of the following scenarios indicates that a company is engaging in wrongful trading according to section 239(12) of the IRDA?
What does section 226(4) of the IRDA refer to in terms of timing concerning transactions?
What does section 226(4) of the IRDA refer to in terms of timing concerning transactions?
In the context of uncommercial transactions, what element must be present according to section 239 of the IRDA to be deemed wrongful?
In the context of uncommercial transactions, what element must be present according to section 239 of the IRDA to be deemed wrongful?
What can additional orders made by the court under S 239(3) IRDA pertain to?
What can additional orders made by the court under S 239(3) IRDA pertain to?
Under S 239(3) IRDA, a court may address which of the following regarding charges on company assets?
Under S 239(3) IRDA, a court may address which of the following regarding charges on company assets?
What provision is indicated in S 239(3)(c) IRDA regarding sums received?
What provision is indicated in S 239(3)(c) IRDA regarding sums received?
Which aspect of company obligations does S 239(3)(i) IRDA specifically address?
Which aspect of company obligations does S 239(3)(i) IRDA specifically address?
What type of orders may a court make under S 239(3) IRDA?
What type of orders may a court make under S 239(3) IRDA?
Which of the following statements regarding the automatic interim moratorium is correct?
Which of the following statements regarding the automatic interim moratorium is correct?
What is the key requirement for the contents of the explanatory statement prior to a creditor's meeting?
What is the key requirement for the contents of the explanatory statement prior to a creditor's meeting?
Which criterion must be met for a scheme to be considered overall fair and equitable to each dissenting class?
Which criterion must be met for a scheme to be considered overall fair and equitable to each dissenting class?
What is the necessary threshold of creditor support required for the voting on a proposed scheme according to Section 210(3AB)?
What is the necessary threshold of creditor support required for the voting on a proposed scheme according to Section 210(3AB)?
Which parties can apply for a scheme under Section 210(2) of the Companies Act?
Which parties can apply for a scheme under Section 210(2) of the Companies Act?
What is one of the factors that the Court considers before approving a scheme?
What is one of the factors that the Court considers before approving a scheme?
What happens after leave is granted by the Court to convene a creditor's meeting?
What happens after leave is granted by the Court to convene a creditor's meeting?
In the context of the scheme application, what does the term 'dissimilarity principle' refer to?
In the context of the scheme application, what does the term 'dissimilarity principle' refer to?
Flashcards
Unfair Preference (UUP) requirements
Unfair Preference (UUP) requirements
Company in liquidation (JM/WU) with transactions within a specific time frame (Section 224 IRDA), where the transaction was at undervalue, intended to give an unfair advantage, and lacking good faith.
Relevant time for UUP claims
Relevant time for UUP claims
One year for unrelated transactions or two years for connected transactions (Section 226(1)(a) IRDA). A specific time period from which potential UUP claims are looked back.
Transaction at undervalue (TUV) requirements
Transaction at undervalue (TUV) requirements
Company in liquidation (JM/WU) with transactions below market value (Section 225 IRDA), where the transaction was made with the intent to be of a preferential nature.
Court's Power in UUP/TUV cases
Court's Power in UUP/TUV cases
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Good faith defense in UUP cases
Good faith defense in UUP cases
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Grounds for Bankruptcy Application
Grounds for Bankruptcy Application
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Presumption of Inability to Pay Debts (IRDA Section 312)
Presumption of Inability to Pay Debts (IRDA Section 312)
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Debt Repayment Scheme
Debt Repayment Scheme
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Private Trustee in Bankruptcy (PBIT)
Private Trustee in Bankruptcy (PBIT)
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Restrictions on the Bankrupt (IRDA)
Restrictions on the Bankrupt (IRDA)
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Annulment of Bankruptcy
Annulment of Bankruptcy
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Discharge of Bankruptcy
Discharge of Bankruptcy
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Factors for OA's Certificate (IRDA Section 396)
Factors for OA's Certificate (IRDA Section 396)
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IRDA Section 239(2) relief
IRDA Section 239(2) relief
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IRDA Section 239(1) personal liability
IRDA Section 239(1) personal liability
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Judicial management/winding up
Judicial management/winding up
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Wrongful trade
Wrongful trade
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Civil liability
Civil liability
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Unfair Presumption (s225(5))
Unfair Presumption (s225(5))
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Court Order & Immunity (s225(6))
Court Order & Immunity (s225(6))
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Coincidence of Temporal/Financial Elements (s226)
Coincidence of Temporal/Financial Elements (s226)
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Unable to Pay Debts (s226(2))
Unable to Pay Debts (s226(2))
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Wrongful Trading (s239)
Wrongful Trading (s239)
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Fraudulent Trading (s238)
Fraudulent Trading (s238)
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Void Disposition (s130)
Void Disposition (s130)
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Floating Charges (s229)
Floating Charges (s229)
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S 239(3) IRDA: Court Orders
S 239(3) IRDA: Court Orders
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S 239(3) IRDA: Debt Recovery
S 239(3) IRDA: Debt Recovery
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S 239(3) IRDA: Interest & Charges
S 239(3) IRDA: Interest & Charges
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S 239(3) IRDA: Payments to Persons
S 239(3) IRDA: Payments to Persons
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Defense of Honesty (S 239 IRDA)
Defense of Honesty (S 239 IRDA)
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Scheme of Arrangement Purpose
Scheme of Arrangement Purpose
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Scheme Application Requirements
Scheme Application Requirements
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Scheme Application Stages
Scheme Application Stages
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Who Can Apply for a Scheme?
Who Can Apply for a Scheme?
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Interim Moratorium
Interim Moratorium
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Court's Role in Scheme Approval
Court's Role in Scheme Approval
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Classifying Creditors in a Scheme
Classifying Creditors in a Scheme
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Voting on the Proposed Scheme
Voting on the Proposed Scheme
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Study Notes
LIQUIDATION
- Part 8 of the IRDA governs liquidation procedures.
- Winding up is a last resort, leading to the dissolution of a company.
- Compulsory winding up is initiated by the court.
- Advantages (company perspective): Avoidance of liability for wrongful trading, genuine business failure without investigatory concerns.
- Advantages (creditor perspective): Suspicion of mismanagement by directors, to examine vulnerable transactions, prevents further debt.
- Disadvantages: Irreversible, potential spotlight on company affairs, creates cross-defaults, financial difficulties exacerbated, expensive and time-consuming, uncertain outcome for creditors, potential for incurring more debt.
- A winding up application can cause irreparable harm.
- Winding up is often uncertain and creditors may receive a fraction of the owed amount.
- Secured creditors take precedence over unsecured creditors.
- A company can incur more debt even after an application for winding up.
Company/Creditor may apply to court for order of winding up on ground of insolvency
- Creditors can file for compulsory winding up, even if a voluntary winding up is already in progress.
- Compulsory winding up has more protections and investigations.
- A creditor's voluntary winding up is initiated by the company, not the creditors.
- Companies that are insolvent should pursue creditors' voluntary winding up.
- Directors owe duty to creditors in cases where the company is insolvent or on the brink of insolvency.
- A company, or any creditor, can apply.
- A contingent/prospective creditor can apply if there is an existing obligation to pay a sum.
- Liquidators can be appointed, nominees can be chosen, and companies can apply for creditors' voluntary winding up.
- Inability to pay debts can be established through failure to meet a statutory demand, execution of a judgment not being completed, or proved inability to pay debts.
- A company must have owed the applicant $15,000 or more.
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Description
This quiz explores the liquidation procedures as outlined in Part 8 of the IRDA. It covers the implications of winding up for companies and creditors, including advantages and disadvantages. Test your understanding of the complexities of liquidation and its financial impacts.