ROREX NL (ROREX) was a liability company that operate from january 2015 until june 2021. Although headquartered in Australia ROREX mined rare earth element (REEs) in the US state of Arizona. REEs incoporate a ,number of different metallic elements on learth's crust to the manufactuiring of modern electronoic ( such as mobile phone). An effective REE mine takes many years to establish due to complex extraction and refining processes. Whistle ROREX got off to a good start in 2015 due to significant and unforeseen operating costs over the 2020-2021 financial year ( caused by the COVID- 19 emergency) ROREX became insolvent in june 2021.

At the time of declaring insovency, RORXE owned money to many creditors with debts running into the hundreds of millions of dollor. However, ROREX .held several patents to REE mining technology which could be sold to others REE miners. At the time of declaring insovency it was also widely observed that the REE mining industry was projected to boom within 5 years due to insatiable global drmand for REEs. THe Board of ROREX voted in june 2021 to place the company into voluntary administration.

Question 1

A. Explain the meaning of "solvent" and "insolvent" accorfding to the corporation Act 2001 (cth) ?

B. Outline the procefdure for entering voluantry administration.

C. GIven the circumtances of ROREX, consider each course of action that voluantry administration could take , playing attention to interactions between the company participants ( director/members) anad creditors and administration. which course of action do you think would be more suitable given ROREX's circumstances ?