To determine which statements are correct, let's analyze each one:
A. A person can have more than one estate during their lifetime if they were sequestrated.
- This statement is misleading. Generally, when a person is sequestrated (declared insolvent), their assets are consolidated under a single insolvent estate for the purpose of distribution to creditors. Therefore, this statement is not typically considered correct.
B. A creditor's right to recover his claim in full by judicial proceedings is replaced by the right to share with all other proved creditors in the proceeds of the estate assets on proving a claim against the insolvent estate.
- This statement is correct. When a debtor is sequestrated, creditors must submit their claims and then share the available assets, which is a fundamental principle of insolvency law.
C. The Insolvency Act predates the Constitution and is part of Apartheid legislation.
- This statement is also correct. The original Insolvency Act indeed predates the new South African Constitution and has its roots in old laws, some of which may be viewed as part of the Apartheid legacy.
D. Both a person and their estate can be sequestrated and be referred to as being insolvent.
- This statement is correct. An individual can be declared insolvent, and the estate can also be referred to as insolvent in the context of the proceedings.
E. An insolvent who committed an offence can be imprisoned between six months and three years without the option of a fine.
- This statement is correct. There are provisions in the law for the imprisonment of an insolvent under certain circumstances, especially relating to fraudulent activities.
Based on the analysis:
- Statements B, C, D, and E are correct.
- Statement A is the only incorrect statement.
Therefore, the option that includes all correct statements (B, C, D, and E) does not exist as a combined answer. However, among the given combinations, the closest correct combination with all correct statements (excluding A) would be "Statements B, C and D are correct." (assuming it were to exist).
Since none of the provided options fits perfectly, the best course is to note the independence of each valid statement found, particularly B, C, D, and E, while recognizing the flaw in A, rather than trying to select from the given options which incorrectly include A.
However, since there isn't an option explicitly stating B, C, D, and E as correct, the best option relating to correctness would perhaps focus on aligning with the maintenance of B, C, and E from those chosen.
For optimal clarity given existing choices and correctness: "Statements B, C, and D are correct" would be the best inferred choice available among uncertainty in complete representation. If B, C, D are correct elsewhere (and assuming E holds alongside), it reflects notable insolvency aspects efficiently.
1 answer