Suitability of a company voluntary arrangement

Assignment Help Accounting Basics
Reference no: EM13969522

1. John holds shares in Derwent Ltd and wishes to retire and dispose of his shareholding for cash. Dick and Harry are the other two shareholders but they cannot afford to pay for the shares. John is thinking of selling his shares to his brother and Dick and Harry do not want this.

Explain to Dick and Harry how the company might purchase John's shares and outline the procedure to them.

2. Corporate insolvency: a case study Trent Ltd is a small company. John and Paul are the shareholders and the company's overdraft with the Barchester Bank plc is secured by a floating charge on the whole of the company's undertaking.

Problems have arisen within the company. Trent Ltd is over-borrowed and has declining margins. The company has started to run short of cash. It is struggling to pay its bills and may fail in the near future.

Nevertheless, John and Paul intend to carry on business through the company. The bank and other creditors are pressing for payment. John and Paul seek your advice on resolving the present difficulties.

Matters to be addressed:

(a) The consequences for John and Paul of continuing to trade through the company in its present state.

(b) The suitability of a company voluntary arrangement or administration and the steps to be taken.

(c) The last-ditch possibility of a winding-up, preferably without the involvement of the court. Discuss procedures.

(d) Explain to John and Paul what steps the Barchester Bank can take.

(e) Explain the steps that unsecured creditors can take.

Reference no: EM13969522

Questions Cloud

Explain process of develope effective cultural communication : Explain a process for developing effective cultural communications, including treating patients with limited English proficiency (LEP).
Found in acts of parliament : 1. Make a list of all the agreements you made (a) today, and (b) yesterday. Identify which agreements are contracts and explain why they are legally binding.
Discuss the life of king solomon : Beginning with his father's ( King David's) death, discuss the life of King Solomon, What are some of hi positive and nagative qualities? Support your answer with references to the biblical text
Create new blank database in access and save using your name : Create the attributes (fields) for each table. Field names should be fully qualified (i.e. the table name should be included as part of the field name. Field names should not contain spaces (e.g. CustomerLastName)).
Suitability of a company voluntary arrangement : Nevertheless, John and Paul intend to carry on business through the company. The bank and other creditors are pressing for payment. John and Paul seek your advice on resolving the present difficulties.
Discuss what personal characteristics set you apart : Identify any area of weakness that you hope to strenghten while in your academic studies. Finally, discuss what personal characteristics set you apart from others and will help you as a student achieve success in your academic and professional goa..
Describe your interviewees position and type of organization : Describe your interviewee's position (role, responsibility) and type of organization where he or she works. What did you discover about the topics interrelated to developing a culturally competent and diverse organization?
How does photography change : How did Pop artists unify popular and high culture for the first time? Who is your favorite Pop artist? Why? How does photography change? Its purpose? Its style? Who have been some of the most famous or controversial artists? Why
What was the impact on performance, motivation and turnover : Provide examples from your work experiences in which incongruent HR practices existed. What was the impact on performance, motivation and turnover?

Reviews

Write a Review

Accounting Basics Questions & Answers

  The ineffective leaders demonstrate

The base rate of managerial incompetence is estimated to be 50 to 75%. This means that a majority of people in positions of authority have difficulties getting a group of people to work effectively together or get results.

  How would a bond payable be reported on the balance sheet

1. fleeson company needs additional funds to purchase equipment for a new production facility and is considering either

  Library resources company uses activity-based costingthe

library resources company uses activity-based costing.the company produces soft and hard-cover books. the estimated

  Kopecky corp had the following balances in receivable

kopecky corp. had the following balances in receivable accounts at october 31 2012 in thousands allowance for doubtful

  On december 1 showcase interiors purchased a shipment of

on december 1 showcase interiors purchased a shipment of furniture from colonial house by paying 10500 cash and issuing

  You are auditing the accounts receivable balance of a cable

you are auditing the accounts receivable balance of a cable television provider. individual accounts receivables tend

  Would it be possible for calcor company to achieve the

calcor company has been a wholesale distributor of automobile parts for domestic automakers for 20 years. calcor has

  What is the future value on december 312020 of 20 cash

what is the future value on december 312020 of 20 cash flows of 15000 with th first cash payment made on december 31

  What are the auditing procedures green

What are the auditing procedures Green should consider performing to gather evidence concerning subsequent events?

  Big bucks casino is currently operating at 80 percent

big bucks casino is currently operating at 80 percent capacity. worried about the casinos performance grey the general

  When is the termination effective

The corporation issues the stock to Sid on September 13, 2010, to raise additional equity capital. Sid owns no other Orlando stock.a. Does Orlando's S election terminate? If so, when is the termination effective?

  The president of the company is not convinced that the

the president of the company is not convinced that the interest expense should be excluded from the calculation of the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd