Question
Please address all questions with clear explanation. Thank you. 1. John Brown, a chartered accountant, has been appointed by the High Court to liquidate Franklin
Please address all questions with clear explanation. Thank you.
1. John Brown, a chartered accountant, has been appointed by the High Court to liquidate Franklin Hardware Co Ltd (in liq). John Brown prepares a set of accounts which show the following creditors:
a) Various unsecured trade creditors.
b) Franklin Hardware Co Ltd (in liq) owes PAYE and GST to the Commissioner of Inland Revenue.
c) John Brown has incurred costs in his conduct of the liquidation.
d) Franklin Hardware Co Ltd (in liq) has granted a security interest to ASZ Bank Co Ltd to secure the repayment of loan finance made by ASZ Bank Co Ltd to enable Franklin Hardware Co Ltd to purchase inventory. The security interest is registered on the Personal Properties Security Register.
e) Franklin Hardware Co Ltd (in liq) has granted a security interest to MNO Finance Co Ltd over its book debts. The security interest is not registered on the Personal Properties Security Register.
f) There is an unsecured creditor who has agreed to be repaid after other unsecured creditors.
Required: Referring to relevant sections of the Companies Act 1993, advise John Brown of the order in which he must make payments to the creditors of Franklin Hardware Co Ltd (in liquidation)
2. Outline the circumstances in which a company can be held liable in tort, even though no natural person is liable in tort.
3. Outline the circumstances in which a company can be held liable in crime
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