Sally ran a business retailing Gateway computers as a private enterprise. She was aware that her business was in financial difficulties with the slowing of the general economy and in particular the slowing of the computer market. She therefore decided to incorporate a limited liability company, SIN Co. Ltd. She held 99% of the charter capital in SIN Co. Ltd with her accountant holding the 1% remaining of the charter capital. She then sold her private enterprise to the company and took a 20 billion VND bonds from the company in return.

Unfortunately the business failed six months later and SIN Co. Ltd went into bankruptcy. The reason for the failure was that the Head Office of Gateway Computers in the UK decided no longer to attempt to sell computers in Vietnam. Various creditors of SIN Co. Ltd are owed 10 billion VND. The company has only 9,5 billion VND in assets, held in cash from the forced sale of the stock of computers

(a) The liquidator refuses to pay Sally the 20 billion VND under the bonds. He proposes to pay the 9,5 billion VND to the creditors of SIN Co. Ltd first.

(b) The liquidator also intends to sue Sally for her personal assets to raise extra moneys to repay the creditors of SIN Co. Ltd in full. Sally owns a house worth 50 billion VND.

Discuss the decisions of the liquidator.