Insolvency – Knowsia

RM – JUL 2020 – L4 – Q1 – Capital Inadequacy and Measures to Bolster CAR

Discuss measures a bank can take to improve a declining Capital Adequacy Ratio to prevent insolvency or sanctions, referencing recent Ghanaian bank collapses.

Question

Capital inadequacy (low or negative Capital Adequacy Ratio, below 10%) featured prominently in the financials culminating into the recent collapse of some banks in Ghana.

What measures may a bank take to bolster its declining ratio to avoid insolvency or regulatory sanctions?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bank Collapse, Capital Adequacy Ratio, Ghana Banking Cleanup, Insolvency, Regulatory Sanctions
Level: Level 4

Topic: Capital Adequacy
Series: JULY 2020

POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers

Scenario where a securities clerk asks the branch manager to explain what a debenture is, why the credit director requests a debenture over fixed and floating assets instead of just a fixed charge, and details on the meaning, appointment, and role of an administrative receiver for a company.

Question

As the Branch Manager of your High Street Branch in Accen, your Securities Clerk asks you the following questions:
a. We submitted any application to the Director/Credit showing the following details of Account X Ltd

Proposed Limit: GH$500,000,000;
Proposed Security: Fixed Charge over the factory, minimum forced sale value (FSV) GH$1,500,000,000 on a professional valuation.
The Director/Credit’s office has agreed to lend, but have expressed dissatisfaction with the security and have requested us to take a Debenture under.
Explain the following to your Clerk:
i. What is a Debenture?
ii. Why is the Director/Credit’s’ office requesting for a debenture over the company’s fixed and floating assets?
b. I have read some correspondence about the appointment of an “Administrative Receiver” for Z Limited. Can you explain what “Administrative Receiver” means, how the administrative receiver is appointed and what the administrative receiver does?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Administrative Receiver, Appointment, Companies Act, Company Securities, Debenture, Duties, Fixed Charge, Floating Charge, Insolvency, Receivership
Level: Level 3

Topic: Securities Acceptable to Bankers
Series: APRIL 2016

PBL – APR 2014 – L1 – Q5 – Grounds for Court-Ordered Winding Up of a Company

Grounds on which a court will order the winding up of a company.

Question

On what grounds will the Court order the winding up of a company?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Companies Code 1963, Company Liquidation, Court Orders, Grounds for Winding Up, Insolvency, Just and Equitable, Winding-up
Level: Level 1

Topic: Contract Law
Series: APRIL 2014

AAA – Nov 2012 – L3 – AII – Q12 – Auditor’s Legal Liability

Identifies the type of creditors given priority in payment during a liquidation process.

Question

The creditors given priority payment during a liquidation process are known as …………………. creditors.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Creditors, Insolvency, Legal Liability, Liquidation, Priority Payment
Level: Level 3

Topic: Auditor’s Legal Liability
Series: NOV 2012

AAA – Nov 2012 – L3 – SA – Q18 – Auditor’s Legal Liability

Identifying debtor categories exempt from bankruptcy declaration under Nigerian law.

Question

The following categories of debtors may be declared bankrupt (according to Bankruptcy Law in Nigeria) EXCEPT:

A. A debtor owing a liquidated sum of at least N2,000 (Two Thousand Naira only).
B. A debtor who has committed an act of bankruptcy within 3 months before presentation of bankruptcy petition.
C. Any debtor domiciled in Nigeria or who has carried on business in Nigeria by means of an agent or a manager.
D. A debtor that makes any conveyance or transfer of his property or any part thereof if he were adjudged bankrupt.
E. A debtor who transacts business in Nigeria and is able to meet his obligation as at when they fall due.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bankruptcy Law, Debtors, Insolvency, Legal Liability, Nigeria Law
Level: Level 3

Topic: Auditor’s Legal Liability
Series: NOV 2012

AAA – Nov 2011 – L3 – SAII – Q17 – Review of Subsequent Events and Going Concern Assumptions

Definition of a company's inability to meet financial obligations on time.

Question

The inability of a company to meet its financial obligations as and when due is called……………..

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Obligations, Financial obligations, Insolvency, Liquidity
Level: Level 3

Topic: Review of Subsequent Events and Going Concern Assumptions
Series: NOV 2011

BL – Nov 2020 – L1 – SB – Q2c – Company Law

Differentiate insolvency from bankruptcy and outline consequences of insolvency.

Question

Insolvency occurs when a company is unable to pay its debts.

Required:
i. Distinguish insolvency from bankruptcy.
ii. Explain briefly the consequences of insolvency on a company.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bankruptcy, Corporate Consequences, Financial Distress, Insolvency
Level: Level 1

Topic: Company Law
Series: NOV 2020

BL – Nov 2020 – L1 – SA – Q5 – Company Law

Objective question testing knowledge on company financial status related to solvency.

Question

5. A company whose liabilities exceed its assets is said to be
A. Buoyant
B. Broke
C. Rich
D. Insolvent
E. Pauperised

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Liabilities, Financial Terms, Insolvency, Solvency
Level: Level 1

Topic: Company Law
Series: NOV 2020

BL – May 2013 – L1 – SA – Q20 – Law of Trusts

This question tests knowledge of which entities cannot be declared bankrupt.

Question

Which of the following CANNOT be made a bankrupt?

A. A company
B. A Nigerian
C. A partnership
D. A foreigner who lives in Nigeria
E. A foreigner who has a place of business in Nigeria

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bankruptcy, Insolvency, Legal Status
Level: Level 1

Topic: Law of Trusts
Series: MAY 2013

BL – May 2013 – L1 – SA – Q11 – Law Relating to Banking

This question tests the knowledge of the official responsible for administering a debtor's estate in bankruptcy.

Question

The person charged with the duty of administering a debtor’s estate in a bankruptcy proceeding is known as the:

A. Liquidator
B. Official Receiver
C. Registrar of the Supreme Court
D. Auctioneer
E. Executor

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bankruptcy, Insolvency, Official Receiver
Level: Level 1

Topic: Law Relating to Banking
Series: MAY 2013

RM – JUL 2020 – L4 – Q1 – Capital Inadequacy and Measures to Bolster CAR

Discuss measures a bank can take to improve a declining Capital Adequacy Ratio to prevent insolvency or sanctions, referencing recent Ghanaian bank collapses.

Question

Capital inadequacy (low or negative Capital Adequacy Ratio, below 10%) featured prominently in the financials culminating into the recent collapse of some banks in Ghana.

What measures may a bank take to bolster its declining ratio to avoid insolvency or regulatory sanctions?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bank Collapse, Capital Adequacy Ratio, Ghana Banking Cleanup, Insolvency, Regulatory Sanctions
Level: Level 4

Topic: Capital Adequacy
Series: JULY 2020

POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers

Scenario where a securities clerk asks the branch manager to explain what a debenture is, why the credit director requests a debenture over fixed and floating assets instead of just a fixed charge, and details on the meaning, appointment, and role of an administrative receiver for a company.

Question

Proposed Limit: GH$500,000,000;
Proposed Security: Fixed Charge over the factory, minimum forced sale value (FSV) GH$1,500,000,000 on a professional valuation.
The Director/Credit’s office has agreed to lend, but have expressed dissatisfaction with the security and have requested us to take a Debenture under.
Explain the following to your Clerk:
i. What is a Debenture?
ii. Why is the Director/Credit’s’ office requesting for a debenture over the company’s fixed and floating assets?
b. I have read some correspondence about the appointment of an “Administrative Receiver” for Z Limited. Can you explain what “Administrative Receiver” means, how the administrative receiver is appointed and what the administrative receiver does?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Administrative Receiver, Appointment, Companies Act, Company Securities, Debenture, Duties, Fixed Charge, Floating Charge, Insolvency, Receivership
Level: Level 3

Topic: Securities Acceptable to Bankers
Series: APRIL 2016

PBL – APR 2014 – L1 – Q5 – Grounds for Court-Ordered Winding Up of a Company

Grounds on which a court will order the winding up of a company.

Question

On what grounds will the Court order the winding up of a company?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Companies Code 1963, Company Liquidation, Court Orders, Grounds for Winding Up, Insolvency, Just and Equitable, Winding-up
Level: Level 1

Topic: Contract Law
Series: APRIL 2014

AAA – Nov 2012 – L3 – AII – Q12 – Auditor’s Legal Liability

Identifies the type of creditors given priority in payment during a liquidation process.

Question

The creditors given priority payment during a liquidation process are known as …………………. creditors.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Creditors, Insolvency, Legal Liability, Liquidation, Priority Payment
Level: Level 3

Topic: Auditor’s Legal Liability
Series: NOV 2012

AAA – Nov 2012 – L3 – SA – Q18 – Auditor’s Legal Liability

Identifying debtor categories exempt from bankruptcy declaration under Nigerian law.

Question

The following categories of debtors may be declared bankrupt (according to Bankruptcy Law in Nigeria) EXCEPT:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bankruptcy Law, Debtors, Insolvency, Legal Liability, Nigeria Law
Level: Level 3

Topic: Auditor’s Legal Liability
Series: NOV 2012

AAA – Nov 2011 – L3 – SAII – Q17 – Review of Subsequent Events and Going Concern Assumptions

Definition of a company's inability to meet financial obligations on time.

Question

The inability of a company to meet its financial obligations as and when due is called……………..

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Obligations, Financial obligations, Insolvency, Liquidity
Level: Level 3

Topic: Review of Subsequent Events and Going Concern Assumptions
Series: NOV 2011

BL – Nov 2020 – L1 – SB – Q2c – Company Law

Differentiate insolvency from bankruptcy and outline consequences of insolvency.

Question

Insolvency occurs when a company is unable to pay its debts.

Required:
i. Distinguish insolvency from bankruptcy.
ii. Explain briefly the consequences of insolvency on a company.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bankruptcy, Corporate Consequences, Financial Distress, Insolvency
Level: Level 1

Topic: Company Law
Series: NOV 2020

BL – Nov 2020 – L1 – SA – Q5 – Company Law

Objective question testing knowledge on company financial status related to solvency.

Question

5. A company whose liabilities exceed its assets is said to be
A. Buoyant
B. Broke
C. Rich
D. Insolvent
E. Pauperised

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Liabilities, Financial Terms, Insolvency, Solvency
Level: Level 1

Topic: Company Law
Series: NOV 2020

BL – May 2013 – L1 – SA – Q20 – Law of Trusts

This question tests knowledge of which entities cannot be declared bankrupt.

Question

Which of the following CANNOT be made a bankrupt?

A. A company
B. A Nigerian
C. A partnership
D. A foreigner who lives in Nigeria
E. A foreigner who has a place of business in Nigeria

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bankruptcy, Insolvency, Legal Status
Level: Level 1

Topic: Law of Trusts
Series: MAY 2013

BL – May 2013 – L1 – SA – Q11 – Law Relating to Banking

This question tests the knowledge of the official responsible for administering a debtor's estate in bankruptcy.

Question

The person charged with the duty of administering a debtor’s estate in a bankruptcy proceeding is known as the:

A. Liquidator
B. Official Receiver
C. Registrar of the Supreme Court
D. Auctioneer
E. Executor

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bankruptcy, Insolvency, Official Receiver
Level: Level 1

Topic: Law Relating to Banking
Series: MAY 2013

Question Tag: Insolvency

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RM – JUL 2020 – L4 – Q1 – Capital Inadequacy and Measures to Bolster CAR

Discuss measures a bank can take to improve a declining Capital Adequacy Ratio to prevent insolvency or sanctions, referencing recent Ghanaian bank collapses.

You're reporting an error for "RM – JUL 2020 – L4 – Q1 – Capital Inadequacy and Measures to Bolster CAR"

POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers

Scenario where a securities clerk asks the branch manager to explain what a debenture is, why the credit director requests a debenture over fixed and floating assets instead of just a fixed charge, and details on the meaning, appointment, and role of an administrative receiver for a company.

You're reporting an error for "POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers"

PBL – APR 2014 – L1 – Q5 – Grounds for Court-Ordered Winding Up of a Company

Grounds on which a court will order the winding up of a company.

You're reporting an error for "PBL – APR 2014 – L1 – Q5 – Grounds for Court-Ordered Winding Up of a Company"

AAA – Nov 2012 – L3 – AII – Q12 – Auditor’s Legal Liability

Identifies the type of creditors given priority in payment during a liquidation process.

You're reporting an error for "AAA – Nov 2012 – L3 – AII – Q12 – Auditor’s Legal Liability"

AAA – Nov 2012 – L3 – SA – Q18 – Auditor’s Legal Liability

Identifying debtor categories exempt from bankruptcy declaration under Nigerian law.

You're reporting an error for "AAA – Nov 2012 – L3 – SA – Q18 – Auditor’s Legal Liability"

AAA – Nov 2011 – L3 – SAII – Q17 – Review of Subsequent Events and Going Concern Assumptions

Definition of a company's inability to meet financial obligations on time.

You're reporting an error for "AAA – Nov 2011 – L3 – SAII – Q17 – Review of Subsequent Events and Going Concern Assumptions"

BL – Nov 2020 – L1 – SB – Q2c – Company Law

Differentiate insolvency from bankruptcy and outline consequences of insolvency.

You're reporting an error for "BL – Nov 2020 – L1 – SB – Q2c – Company Law"

BL – Nov 2020 – L1 – SA – Q5 – Company Law

Objective question testing knowledge on company financial status related to solvency.

You're reporting an error for "BL – Nov 2020 – L1 – SA – Q5 – Company Law"

BL – May 2013 – L1 – SA – Q20 – Law of Trusts

This question tests knowledge of which entities cannot be declared bankrupt.

You're reporting an error for "BL – May 2013 – L1 – SA – Q20 – Law of Trusts"

BL – May 2013 – L1 – SA – Q11 – Law Relating to Banking

This question tests the knowledge of the official responsible for administering a debtor's estate in bankruptcy.

You're reporting an error for "BL – May 2013 – L1 – SA – Q11 – Law Relating to Banking"

RM – JUL 2020 – L4 – Q1 – Capital Inadequacy and Measures to Bolster CAR

Discuss measures a bank can take to improve a declining Capital Adequacy Ratio to prevent insolvency or sanctions, referencing recent Ghanaian bank collapses.

You're reporting an error for "RM – JUL 2020 – L4 – Q1 – Capital Inadequacy and Measures to Bolster CAR"

POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers

Scenario where a securities clerk asks the branch manager to explain what a debenture is, why the credit director requests a debenture over fixed and floating assets instead of just a fixed charge, and details on the meaning, appointment, and role of an administrative receiver for a company.

You're reporting an error for "POB-LAW-APR-2016-L3-Q6-Debentures and Administrative Receivers"

PBL – APR 2014 – L1 – Q5 – Grounds for Court-Ordered Winding Up of a Company

Grounds on which a court will order the winding up of a company.

You're reporting an error for "PBL – APR 2014 – L1 – Q5 – Grounds for Court-Ordered Winding Up of a Company"

AAA – Nov 2012 – L3 – AII – Q12 – Auditor’s Legal Liability

Identifies the type of creditors given priority in payment during a liquidation process.

You're reporting an error for "AAA – Nov 2012 – L3 – AII – Q12 – Auditor’s Legal Liability"

AAA – Nov 2012 – L3 – SA – Q18 – Auditor’s Legal Liability

Identifying debtor categories exempt from bankruptcy declaration under Nigerian law.

You're reporting an error for "AAA – Nov 2012 – L3 – SA – Q18 – Auditor’s Legal Liability"

AAA – Nov 2011 – L3 – SAII – Q17 – Review of Subsequent Events and Going Concern Assumptions

Definition of a company's inability to meet financial obligations on time.

You're reporting an error for "AAA – Nov 2011 – L3 – SAII – Q17 – Review of Subsequent Events and Going Concern Assumptions"

BL – Nov 2020 – L1 – SB – Q2c – Company Law

Differentiate insolvency from bankruptcy and outline consequences of insolvency.

You're reporting an error for "BL – Nov 2020 – L1 – SB – Q2c – Company Law"

BL – Nov 2020 – L1 – SA – Q5 – Company Law

Objective question testing knowledge on company financial status related to solvency.

You're reporting an error for "BL – Nov 2020 – L1 – SA – Q5 – Company Law"

BL – May 2013 – L1 – SA – Q20 – Law of Trusts

This question tests knowledge of which entities cannot be declared bankrupt.

You're reporting an error for "BL – May 2013 – L1 – SA – Q20 – Law of Trusts"

BL – May 2013 – L1 – SA – Q11 – Law Relating to Banking

This question tests the knowledge of the official responsible for administering a debtor's estate in bankruptcy.

You're reporting an error for "BL – May 2013 – L1 – SA – Q11 – Law Relating to Banking"

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