Q1

Bozza and Rishi are the two shareholders in Muck Ltd, a company that supplies Protective Equipment. Bozza has 55% of the shares and Rishi 45%.

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Muck Ltd has borrowed 10,000 from HardBank secured with a floating charge over the company and all its assets in March. They then borrowed 5,000 secured with what the contract says is a fixed charge over the book debts of the company. Bozza wants your advice as to which charge would be paid first should the company become insolvent