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LAW303 - Corporations Law Assignment

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Singapore University of Social Sciences

   

Corporation Law (LAW303)

   

Added on  2020-03-01

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The below document discusses the rights of shareholders. The below document also compare and contrast types of general meetings, resolutions, notices and Demonstrate your understanding and outline how the law protects minority shareholder as regards their personal rights.

LAW303 - Corporations Law Assignment

   

Singapore University of Social Sciences

   

Corporation Law (LAW303)

   Added on 2020-03-01

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Running head: LAW OF THE BUSINESS ORGANIZATIONLaw of Business OrganizationName of the StudentName of the UniversityAuthor Note
LAW303 - Corporations Law Assignment_1
1LAW OF THE BUSINESS ORGANIZATIONBrief Fact of the Case:In the given case the Pop Pte Ltd is a private limited company being registered office atSingapore and is involved n the business of retail furniture. Priscilla is the sole shareholder andthe director of the company. Dod Pte Ltd is a private company who manufactures outdoor livingroom furniture’s and is a major supplier of goods to Pop. Pop has a debt of S$ 30,000 to Dod fora 15 sets of outdoor furniture supplied to Pop on 1st of March 2017. On 1st August 2017 Dod filedan insolvency proceedings against Pop for the debt amount. The court passed a winding up andorder and appointed a liquidator. Now the liquidator has collected all information relating to theassets and liabilities of Pop’s company. a)When a company gets dissolved by the order of the court it is known as winding up orliquidation. The process of liquidation involves the investigation into the affairs of thecompany, realization of the assets of the company, payment to be made to the creditors ofthe company and is any surplus is left after the payment made to all the creditors of thecompany then the surplus is to be distributed among the beneficiaries of the company.The process of liquidation is conducted by the court by appointing a private liquidatorwho has certain duties, responsibilities and liabilities in conducting the process (Wan,2016). Various provisions of the law states the duties or responsibilities of the liquidatorin discharging its duties. Therefore the functions of the liquidators are various and theyshall abide by the rules and regulations of the legislation relating to the process ofliquidation. The Singapore Bankruptcy Act deals in the insolvency procedure of anindividual and shall be read with the insolvency provisions of the companies Act 2006 ofSingapore. As per the provisions of the Bankruptcy Act of Singapore Secured creditorshave the priority over all the claims of the creditors (Alexander, 2016). The general
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2LAW OF THE BUSINESS ORGANIZATIONranking of the creditors as per the type of debt they owes the liquidated company are asfollows:The liquidator’s fees or expenses shall be the first priority after disposing theassets of the company.Creditors claim secured by fixed charges;Costs and expenses for the process of winding up of the company;Wages or salary other remuneration due to the employees;Taxes to be paid to the government;Claims secured by floating charge;Unsecured Creditors;If any surplus is left shall be distributed within the beneficiaries of the company(Hazarika, 2014).Therefore, as per the details provided in the fact of the case the liquidator will rank the claims asfollows:Ocean Bank will receive the amount to the extent of fixed charges on machineries of thePop Pte Ltd.S$ 15,000 incurred for the cost and expenses in the process of liquidation.S$20,000 unpaid wages of the employees and workers.Ocean bank will receive the amount to the extent of floating charges on the inventoriesstored in Pop’s WarehouseDod Pte Ltd as an unsecured creditor of Pop Pte Ltd shall receive S$30,000 as unpaiddebt by the Pop Pte Ltd (Chan, 2016).
LAW303 - Corporations Law Assignment_3

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