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Hat Ltd is a coach tour company. Lately, it leased a fleet of five brand new 'Executive style' coaches ahead of an anticipated increase in business. The coaches cost a total of £25,000 a month to lease, and on top of this, the business also has to pay its overheads including staff costs – a total of £20,000 per month. The increase in business did not materialise and Hat Ltd is only generating £30,000 of revenue per month. The coach trips are going out on average 50% full of passengers.
William, the Finance Director is increasingly concerned about the situation and has called a meeting of the board of directors to discuss the matter and the possibility of putting the business into administration.
Which TWO of the following statements regarding administration orders are correct?
Identify which of the following documents William would be essential to submit in order to apply for an administration order for Hat Ltd.
Would an administration order be granted to Hat Ltd and why?
The directors of Harry Ltd have recently appointed an administrator to help rescue the company from its financial difficulties. The directors are aware that a consequence of administration is that the powers of the board are suspended and the administrator assumes the day-to-day management of the company. However, the directors are unsure whether they are legally required to make any parties aware of the appointment.
Which TWO of the following are legal duties of an administrator as soon as is reasonably practicable after appointment?
Which of the following parties can appoint or not appoint an administrator for Harry Ltd apart from its directors?
Somu Ltd is a private trading company registered in 2019. The company has enjoyed success through the years, but now the shareholders believe it is the right time to discontinue the operation and bring the company to end. The company has net assets of approximately £800,000 and its only liability is a secured bank loan of £50,000.
What kind of a resolution will be passed by the members of Somu Ltd in order to wind up the company?
At which point does a members' voluntary liquidation commence?
State whether True or False.
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