, What info must be contained in a compromise proposal? - CORRECT ANSWERS-- any
proposals made "informally" by a company creditor
- details of all assets and creditors
- treatment of ongoing contracts
- order of preference, proceeds apply
- conditions precedent
- number of employees
- t&c of employment
- projected balance sheet
- income and expenses for 3 years
- certificate by authorized director stating info is factual, accurate, up to date
When will compromise be adopted and binding - CORRECT ANSWERS-- S155(6)
adopted if supported by a majority in number representing at least 75% in value of
creditors
- A company may apply to court for an order approving the proposal
- suggests it is not necessary for a company to obtain sanction of High Court before a
compromise becomes binding on dissenting creditors
Record date - CORRECT ANSWERS-- determines certain rights of shareholders
- S59(1) a company may set a record date for purpose of determining which
shareholders are entitled to receive the notice, vote etc
- latest date by which the company is required to give notice to SH of the meeting, or
date of action or event
- board fail to set date, date is last day on which notice should be given to SH of SH
meeting (public = 15 bdays; private = 10 bdays)
Compromise - CORRECT ANSWERS-- agreement or arrangement or restructuring of
claims between a company and its creditors in terms of which the creditors agree to
accept less than their full claims against the company
- binding on all companies creditors
Compromise proposal is divided into three parts - CORRECT ANSWERS-- background
- the proposal itself
- assumptions and conditions
How is proposal of compromise effected? - CORRECT ANSWERS-- by delivery of a
copy of the proposal
- and notice of a meeting to consider the proposal to the Companies Commission and to
every creditor of the company or every member of the relevant class of creditors whose
name and address is known or can reasonable be obtained by the company
proposals made "informally" by a company creditor
- details of all assets and creditors
- treatment of ongoing contracts
- order of preference, proceeds apply
- conditions precedent
- number of employees
- t&c of employment
- projected balance sheet
- income and expenses for 3 years
- certificate by authorized director stating info is factual, accurate, up to date
When will compromise be adopted and binding - CORRECT ANSWERS-- S155(6)
adopted if supported by a majority in number representing at least 75% in value of
creditors
- A company may apply to court for an order approving the proposal
- suggests it is not necessary for a company to obtain sanction of High Court before a
compromise becomes binding on dissenting creditors
Record date - CORRECT ANSWERS-- determines certain rights of shareholders
- S59(1) a company may set a record date for purpose of determining which
shareholders are entitled to receive the notice, vote etc
- latest date by which the company is required to give notice to SH of the meeting, or
date of action or event
- board fail to set date, date is last day on which notice should be given to SH of SH
meeting (public = 15 bdays; private = 10 bdays)
Compromise - CORRECT ANSWERS-- agreement or arrangement or restructuring of
claims between a company and its creditors in terms of which the creditors agree to
accept less than their full claims against the company
- binding on all companies creditors
Compromise proposal is divided into three parts - CORRECT ANSWERS-- background
- the proposal itself
- assumptions and conditions
How is proposal of compromise effected? - CORRECT ANSWERS-- by delivery of a
copy of the proposal
- and notice of a meeting to consider the proposal to the Companies Commission and to
every creditor of the company or every member of the relevant class of creditors whose
name and address is known or can reasonable be obtained by the company
