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BULAW2611 Assignment on Organisation Law

   

Added on  2020-04-01

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Voluntary Administration 1VOLUNTARY ADMINISTRATION: A CASE STUDY ANALYSISby (Name)BULAW2611: Organisations Law(Tutor)(University)(City and State)(Date)
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Voluntary Administration 2Table of Contents3. Constructing a DOCA proposal.............................................................................................24. Insolvent Trading...................................................................................................................25. The Impact of an Administrator’s Appointment on Large Bank Ltd.....................................36. Board Composition and ASX Corporate Governance Guidelines.........................................37. The Role of Minority Shareholders in the Voluntary Administration Process......................3Reference list..............................................................................................................................3
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Voluntary Administration 3Voluntary Administration: A Case Study Analysis3. Constructing a DOCA proposalOne of the options available under voluntary administration is entering into a deed ofcompany arrangement (DOCA). Either of the interested parties in the administration process,that is directors or creditors, may propose a deed highlighting the rights of creditors againstthe organisation and its assets and the obligations of the company in paying out its debt(Cseti, 2011). The deed, therefore, is an instrument that presents a compromise arrangementbetween the organisation and its creditors where the company has been facing financialchallenges. It serves as a way to terminate the voluntary administration process. Once thedeed is approved by the creditors the administration process is complete and the organisationproceeds to enforce the requirements of the deed accordingly. However various factors must be considered in constructing a DOCA proposal. As avoluntary administrator, once should ensure the deed adheres to the provisions of s 444A ofthe Corporations Act 2001. In preparing the proposal, an administrator should ensure theyhave set out the available property; the extent the company is relieved of its debt, pre-execution conditions and post-execution conditions, grounds for termination and order ofdistribution of proceeds among others. The deed may propose a continuation of thecompany’s operation, injection of funds or sale of company properties or outline a fixed sumpayable to creditors over a set period of time. Identifying the most suitable cause of action isguided by the deliberations at the creditors’ meetings as well as liaising with the companydirectors. These are the considerations to be made and criteria to be met in preparing aDOCA proposal for the directors and creditors of 4th Estate Media Limited.4. Insolvent TradingThe Corporations Act 2001 (Cth) under s 95A defines solvency as the capacity to cover alldebts and financial obligations when they are due, failure to this constitutes insolvency under
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