Business Law II Exam I Review ____ 1. As part of a loan to pay for improvements to her restaurant‚ Courtney executes a negotiable instrument in favor of Tim. They are the only parties to the instrument. A negotiable instrument that has only two parties is The promissory note is the simplest form of commercial paper; it is simply a promise to pay money. A promissory note is a two-party instrument in which one person(known as the maker) makes an unconditional promise in writing to pay
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BUSINESS LAW 401 – FINAL EXAM 1. Name three ways to finance a new business. 2. What is the primary purpose of federal bankruptcy law? a. To protect creditors b. To treat all creditors equally c. To preserve business relationships d. To discharge the debtor from burdensome debts by giving him a fresh start 3. Martha started a flower shop as a sole proprietor. After one year‚ she was forced to close the shop because business was so bad
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outlines how financial institutions can treat consumer data in general. The Right to Financial Privacy Act may also apply. Case 20-9 To become a secured party‚ the creditor must obtain a security interest in the collateral of the debtor. Three requirements must be met for a creditor to have an enforceable security interest: Unless the creditor has possession of the collateral‚ there must be written or authenticated security agreement that clearly describes the collateral‚ there must be written
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Pages 552-565: Compulsory Liquidation Remedies 1. Introduction * Deficiency of current law: (1) despite introduction of statutory derivative action‚ formulation is unclear and scope is uncertain (2) focus on single act/transaction rather than whole picture/pattern/period (3) remedies are directed to particular transaction and confined to restraint of conduct‚ Recovery of property or ordering of financial compensation * Statutory remedies fall into 2 categories a. Compulsory liquidation
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Consequences of Winding Up Upon the commencement of winding up proceedings‚ the following consequences shall apply: 1. The business of the company ceases from the commencement of the winding up‚ except so far as the liquidator thinks is necessary for the beneficial winding up of the company. In such an event‚ every invoice‚ order for goods or business letter issued by the company must have the words “in liquidation” added after the name of the company. The liquidator has no power to carry on
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than one year ran into difficulties and liquidation proceedings commenced. The assets of the company were not even sufficient to discharge the debentures (held entirely by Solomon himself). And nothing was left for unsecured creditors. The liquidator on behalf of unsecured creditors alleged that the company was a sham and mere a-lias or agent for Salomon. Court of Appeal: The British Court of Appeal considered the matter and Kay LJ stated that “The statue was intended to allow seven or more persons‚
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tortuous restructuring‚ during which it moved its headquarters from Germany to Britain to take advantage of the flexible insolvency laws there. Along the way‚ its debt burden was cut by 47% and its founder had to give up three-quarters of his shares to creditors. These things happen in business. But the reason for the gleam in the eyes of the London specialists is Schefenacker’s bill for legal and advisory work: well over €40m ($59m). Compared with the £121m ($242m) that British Energy paid between 2003
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Companies Act‚ 1956 and having its registered office at Brahmaputra House‚ A-7‚ Mahipal Pur‚ New Delhi-110 037) NOTICE CONVENING MEETING To The Secured Creditors of Brahmaputra Infraproject Ltd Take Notice that by an order dated 6th August‚ 2012‚ the Hon’ble High Court of Delhi has‚ inter alia‚ directed for convening of a meeting of Secured Creditors of Brahmaputra Infraproject Ltd for the purpose of considering and‚ if thought fit‚ approving‚ with or without modification(s)‚ the proposed Scheme
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LECTURE 5 – DIRECTOR’S DUTIES Overview of duties All directors and officers of a corporation are bound by a number of general law and statutory duties. All directors owe the company equitable duties of loyalty and good faith Act in good faith in the interests of the company Act for a proper purpose Avoid conflicts of interest Retain discretion. s185 – provides that the duties imposed by the Corporations Act are additional to the duties imposed at the common law and in equity‚ rather than
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discretion Moreover‚ care‚ skill and diligence in the performance of their duties must exercised by directors. Stakeholder can be defined as a party that affects or can be affected by the actions of the business[2]‚ which may be include shareholder‚ creditors‚ employees‚ customer‚ supplier and government. Under the principle of the company law‚ directors and officers owe duties to the company as a whole but not to the other person or group rather that shareholder as they are the residual owners of the
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