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Identifying the date of commencement in relation to the winding up of Lounge Lizards

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Added on  2020-01-16

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Evaluating whether transaction is voidable or not 4 QUESTION 2 4 Purpose of the report 4 Identifying the date of second Creditors meeting 4 Concluding the selling aspect of Dick Smith Group as going concern 5 Assessing whether administrator should consider DSG as insolvent or not 5 Defining any kind of transaction which is voidable 5 Recommendations 5 Evaluating the likely outcome for unsecured creditors on the basis of recommendations provided by administrator 6 CONCLUSION 6 REFERENCES 7 INTRODUCTION Laws and legislation introduced by Australian government is

Identifying the date of commencement in relation to the winding up of Lounge Lizards

   Added on 2020-01-16

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Business structure: accounting and legal issue
Identifying the date of commencement in relation to the winding up of Lounge Lizards_1
Table of ContentsINTRODUCTION...........................................................................................................................3QUESTION 1..................................................................................................................................3a. Identifying the date of commencement in relation to the winding up of Lounge Lizards.......3b. Assessing ‘relation back day’ and applies it to Lounge Lizards.............................................3c. Evaluating whether transaction is voidable or not...................................................................4QUESTION 2..................................................................................................................................4Purpose of the report....................................................................................................................4Identifying the date of second Creditors meeting........................................................................4Concluding the selling aspect of Dick Smith Group as going concern.......................................5Assessing whether administrator should consider DSG as insolvent or not...............................5Defining any kind of transaction which is voidable....................................................................5Recommendations........................................................................................................................5Evaluating the likely outcome for unsecured creditors on the basis of recommendationsprovided by administrator............................................................................................................6CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
Identifying the date of commencement in relation to the winding up of Lounge Lizards_2
INTRODUCTION Laws and legislation introduced by Australian government is high significant thatprovides guidance to the individuals in which they need to take action. Section 588 FA and FBof Corporation Act 2001 clearly presents that liquidator can recover certain transactions whichare made by the firm within specified time frame. Hence, voidable transactions are those thatmade within the period of liquidation commencement. This report is based on the case situationwhich will develop understanding about the sections related to voidable transaction andvoluntary administration. QUESTION 1a. Identifying the date of commencement in relation to the winding up of Lounge LizardsGiven case situation entails that one of the creditors of Lounge Lizards Pty Ltd such asSmall Guys Pty Ltd has applied for winding up the business operations on 12 December, 2016.In accordance with the Companies Act (1965) date of winding up is the one which is ordered bythe court. Hence, section 219 presents that date of compulsory winding up is highly influencedfrom the court’s order. The given case scenario clearly presents that on 14th February curt placedorder for the liquidation of Lounge Lizard’s Pty Ltd. Hence, it can be concluded that data ofcommencing winding up business is 14th February 2017. b. Assessing ‘relation back day’ and applies it to Lounge Lizards Corporation Act 2001, section 513 defined relation back day as voidable transaction inwhich company enters during prescribed period prior to the commencement of liquidation.Hence, such period which is determined by the Act is called as ‘Relation back day (Insolvencyunder section 459a and the relation-back day, 2016).’ By considering the given case situation itcan be said that application was filed by one of the creditors namely Small Guyz Pty Ltd onDecember 2017. In this, issue is that on 30th November 2016, furniture was sold by LoungeLizards to Dodgy Brothers. On the other side, date on which order was placed by court is 14thFebruary 2017. Hence, by considering all such aspects it can be presented that Relation BackDay not applies to Lounge Lizards. Moreover, such transaction was not made by Lounge Lizardwithin the prescribed time period.
Identifying the date of commencement in relation to the winding up of Lounge Lizards_3

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