MRL3701 EXAM PACK 2021

QUESTION 1 a) Inability to pay debts is, at most merely evidence of insolvency. (page 3) b) Brenda’s application for voluntary surrender must be set out the causes of her insolvency in some detail to enable the court to determine whether the application is ......................... c) Christopher commits an act of insolvency by departing from his dwelling with the intent by doing so to evade payment of his debts.(page 36) d) The court must be mindful of the fact that where a debtor and creditor in sequestration proceedings are not at arm’s length, there is considerable potential for ....................... e) If a trustee elects to set aside a contract, he may recover any performance rendered by the insolvent, but he must also restore to the third party any perfomance that the insolvent has received under the transaction. f) Dave is a miner, and his right to a benefit or a reward, or money paid to him as a miner, does not form part of his insolvent estate. (page 72) g) One of the duties of the sheriff on receiving a sequestration order is to serve a copy of the order on the solvent spouse if she has a separate estate that has not been sequestrated. (page 81) h) Section 84(1) of the Insolvent Act presupposes that the seller is the owner of the property sold (the res vendita). (page 96) i) If the insolvent has carried out his side of the contract and only the other party’s performance is outstanding, the right to that performance is an asset in the insolvent estate and vests in the trustee. (page 86) j) Kim, the trustee of Lee’s estate, is obliged to convene a general meeting of creditors by means of a notice that must state the matters to be dealt with at the meeting. (page 111-112) k) Where the insolvent contracted to acquire immovable property and the property has not been transferred to him, the trustee must make his election to uphold or repudiate the contract within six weeks after receiving written notice from the other party calling upon him to do so.(page 88) l) If the creditors elect a trustee unlawfully, the Master is not obliged to confirm the election. (page 124) m) In deciding whether a disposition was made in the ordinary course of business, an objective test is applied. (page 143) n) In terms of section 89(2) of the Insolvency Act, a secured creditor may, when proving his claim, choose to rely exclusively on his security. (page 183) o) Compared to common-law compromise, the main advantage of a statutory composition is that it does not depend on the participation of all the creditors. (page 203) p) An application for rehabilitation is brought by way of notice of motion supported by affidavits. (page 212) q) When a partnership is dissolved because the estate of one of the partners has been sequestrated, the partnership assets are divided among the partners in terms of partnership contract or the common law. (page 223) r) The human beings (natural persons) who administer the business of the company are the management/its directors. () s) A voluntary winding up of Kilo CC may be either a creditors’ voluntary winding up, a voluntary winding up by the corporation, or a shareholders voluntary winding up. (page 241) t) The application for compulsory business rescue suspends any liquidation proceedings involving the company. (page 279) QUESTION 2 1. T (page 6) 2. T (page 19) 3. F (page 39) 4. F (page 63) 5. F (page 78) 6. T (page 81) 7. F (page 63) 8. F (page 111-112) 9. T (page 148) 10. F (page 95) 11. F (page 209) 12. F (page 18) 13. F (page 243) 14. T (page 241) 15. F (page 279)