Receivership, Voluntary Administration and Liquidation（Australia company law)）

Receivership, Voluntary Administration and Liquidation Student Name Institution Course Name Instructor Date Receivership, Voluntary Administration and Liquidation Question 1 A statutory demand is a formal written request from a creditor compelling a business to make payment on a debt within the stipulated time frame (currently 21 days). According to Corporations Act s459E, there are prerequisites for submitting a Statutory Demand. Accordingly, the demand must: (a) be related to a debt or obligations that have an amount of $2,000 or more that are due and payable. (b) has to include the debt's amount (c) needs to be submitted in writing using Form 509H, the required form (d) after the demand is served to the corporation, it must demand compliance within the legally mandated time frame, which is presently 21 days (e) must be acknowledged by the creditor or on their behalf (f) if relying on a debt that is not a judgment debt, the demand must be attached to an affidavit confirming the debt is legitimate, due, and payable by the organization and conforms with the regulations (Corporations Form 7 – Affidavit accompanying Statutory Demand). The Statutory Demand cannot be earlier than the affidavit confirming it. The debtor corporation may be subject to a winding-up application due to its presumed insolvency if it fails to respond to the demand. However, a debtor business has multiple options for requesting a judicial order that sets aside a demand. Section 459H of the Corporations Act 2001 provides the most prevalent reasons, which allow a business to assert a legitimate disagreement about the debt exists or there is a counterclaim made against the person making the demand (Ball, 2021). Due to the similarity of establishing each, these grounds are frequently invoked together while attempting to set aside a statutory demand. Question 2 A secured creditor has the right to choose a receiver in the event that a business defaults on a debt. A receiver is a person designated by the secured creditor who appointed them as a registered liquidator to take control of the secured assets and sell or manage them to pay back the secured creditor....