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Corporation Law Add in library

Referencing Styles : Harvard
Fawlty Trucks Pty Ltd carries on an interstate trucking business in Brisbane. It has two directors: Basil, the managing director, and his wife Sybil, who is also the company’s secretary. Apart from its fleet of trucks, the company also owns the house where the directors live. Basil and Sybil’s marriage has broken down and they have separated. Sybil continues to live at the house and is not involved in the day-to-day operations of the company’s business. Basil lives in a hotel ...

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The Voluntary Administration procedure is governed by the Part 5.3A of Corporations Act 2001 (“the Act”). Section 435A of this Act provides that the main object of Part 5.3A is nothing but to provide for the property business and affairs of the insolvent company which is to be administered in a manner that:
1. Increases the occurrence of chances for the company in existence; or
2. The results in a best possible return for the creditors of the company and the members than may result from the winding up of the company.
The benefits for the company which enters into the Administration shall include the following:
1. It allows taking the immediate action and also sets the fixed time for dealing with the matters;
2. The control of the management of the company is also given to some independent person;
3. Preventing the unsecured creditors, lessors and owners of the property from taking an action that may affect adversely to the business and assets of the company;

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