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Sample Assignment On Business Law | doc

   

Added on  2021-02-18

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BUSINESS LAW
Sample Assignment On Business Law | doc_1
Table of ContentsCASE 1............................................................................................................................................1Issue........................................................................................................................................1Rules.......................................................................................................................................1Application.............................................................................................................................1Conclusion..............................................................................................................................2CASE 2............................................................................................................................................2Issue........................................................................................................................................2Rules.......................................................................................................................................2Application.............................................................................................................................3Conclusion..............................................................................................................................4REFERENCES................................................................................................................................5
Sample Assignment On Business Law | doc_2
CASE 1IssueIs the creditor's threat is legal and viable to apply legally.What is the remedy availability to Champion Ltd to avoid compulsory winding up.RulesInsolvency Act, 1986:Section 122: compulsory winding up of businessAs per section 122 of the Insolvency Act, 1986, creditors who owes money from anorganization of amount more than £750 have a right to file a winding up petition in the court tocompulsory liquidate the company and to sell the property and assets of the same. With theamount realized payment to the creditors is done in the order of preferential creditors. This is aremedy available to the creditors when the organization is unable to pay its debt due toinsolvency or any other reason (What Is a Winding Up Order or Petition by Creditors, 2018).Under this the court passes an order to liquidate the business and by selling all the assets andproperties business and pay of the dues of creditors.CVA: Company Voluntary Agreement:This is a remedy available to an organization form being compulsorily wound up. This isa statutory agreement between the insolvent company and its creditors which is legally bindingon both the parties. This arrangement allows the insolvent business to repay all its duesproportionately over a time period of 1-5 years (Angrave and Charlwood, 2015). This proposalmust be approved by at least 75% of the creditors. This is a rescue option available to thecompany who are already insolvent or are on the verge of getting insolvent and is unable o topays its due for a long time. For entering into such arrangement with the creditors there arecertain conditions that must be fulfilled, which includes: the company must be insolvent, andhasengaged an insolvency practitioner and can prove that the business is still viable as a goingconcern (Mairs, Tullos and Kolesar, 2018).ApplicationWith application of the above rules in the given case scenario it can be stated thatChampion ltd is in default from a long time as it is not paying the debts owed to the creditorsafter moving the company in north London. With decline in the number of the consumers theprofits have fallen down and the company have deflated at many occasions in making payment1
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