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Corporate Insolvency Law - Question 1

Corporate Insolvency Law - Answer A

Melbourne Concrete Works Pty Ltd (MCPL) is a construction company. Its directors were Mr. Richard Stone, Mr. William Marsden, and Mr. Joseph Vince. MCPL then entered into a finance facility with Common Australian Bank (CAB) so that operations would not be affected. CAB appointed Mr. John Hope and Mr. Stuart Manning, from the firm Howells Solvency and Forensic Accountants, to conduct the review. When MCPL was likely to become insolvent, the directors decided to enter into voluntary administration. A voluntary Administrator is an independent person appointed by the directors to carry on the process of Voluntary Administration. Voluntary Administration is a procedure that places an insolvent company in the hands of an independent person who is entitled to use all the options available to ensure the most effective result for creditors and business owners. Voluntary administration is a proce....