Corporate Insolvency Laws: Memorandum to Staff of Everything Supplies Ltd (ESL)

Explanation 1: Reclamation of goods when customer company becomes insolvent

It is worth 25% of your final mark. It will be marked out of 50 marks You are an intern for Everything Supplies Ltd (ESL), a business that sells materials to companies in the building industry. When Harry Green, the managing director of ESL, hears that you are a commerce student he corners you at the company’s Friday afternoon social event. “I just don’t get it,” Harrys says, “When our customer companies become insolvent, ESL has sometimes been able to reclaim the goods we have sold. Other times, we’ve only received 20 cents for every dollar owed. In one case, we were paid in full, but the court made us pay the money back to the liquidator. These outcomes are a mystery to me and my managers. Please draft a memo to staff explaining how this corporate insolvency thing works.”

Required
Write a memo to ESL staff explaining the corporate insolvency laws that confuse Harry in the three situations he identifies. You should use plain language but should also include pinpoint statutory citations and references to case law, where relevant.

Instructions: 
Word Count: 1250 words (do not consider this a target, rather than an upper limit)

Format: 
•    Memo to ESL staff—Please start your answer with this title and a short (1-2 sentences introduction). Please finish with a short conclusion.
•    Feel free to use headings to distinguish the three explanations
•    Use paragraphs and full sentences and use either APA referencing or Legal footnotes
•    Marks will be awarded for the content of the explanation and content as well as for referencing, clarity of advice and structure as well as lack of grammatical errors as set out in the marking rubric for this Assignment.

Referencing and Legal Citation
•    Sources should be accurately cited. You should pay attention to the requirements for adequate references and citations in order to avoid the appearance of plagiarism (see Course Outline on this).
•    You may use either footnotes (follow the format found in the New Zealand Law Style Guide) or APA style references in your answer. See below for a guide to using Law style footnotes.* *
**Law references tend to be in footnotes - see your textbook chapters. The quick method to add a footnote is while holding down the ‘Ctrl’ and ‘Alt’ keys, type ‘F’ .

In Black v Brown  the court ruled that all dogs must be kept on a leash when in public. Mary Smith, a well-known vet, cites the leading UK decision Rusty v Lassie  as authority for her claim that poodles should not be included in the Black v Brown ruling. However, in Key on Contracts the author says “All kiwi dogs should be kept on a leash”. If necessary, you can refer to the “New Zealand Law Style Guide”.

•    If you use footnotes, then you do not need to provide a reference list at the end. 
•    Also, if you state in your answer a section number and name of Act, then you do not need to also include that information in a footnote. For example… ‘Section 250(1) of the Companies Act 1993 provides that a Court can order the termination of a liquidation’ does not need to have the following footnote.