Choose the most correct statement or the best combination of statements as indicated in the options that follow the statements.

Question

A. The main objective of a sequestration order is to secure the orderly and equitable distribution of a debtor's assets where they are insufficient to meet the claims of all his creditors.

B. 'Becoming insolvent' has a broader meaning than 'being sequestrated'.

C. A sequestration order is 'not an ordinary judgment entitling a creditor to execute against a debtor'.

D. Where a trustee fails to lodge an account or pay money due to the Master or a creditor, he can be sentenced to payment of a maximum fine of R500.

E. After the winding-up process is complete, the Companies and Intellectual Property Commission records that the company was dissolved and publishes a notice, resulting that the company ceases to exist.


All the statements are correct.


Statements A, C, and D are correct.


Statements B, C and E are correct.


Statements B, C and D are correct.


Statements A, C and E are correct.

Answer 1

To determine the best combination of statements, let's analyze each one:

A. Correct. This statement accurately describes the purpose of a sequestration order in insolvency law.

B. Correct. 'Becoming insolvent' does indeed have a broader meaning than 'being sequestrated,' as insolvency can refer to a broader range of situations where debts cannot be paid, while sequestration specifically refers to legal proceedings to manage those debts.

C. Correct. A sequestration order differs from ordinary judgments where a creditor can execute against a debtor's assets.

D. This statement may be outdated or factually incorrect, as fines for trustees can vary and may not be limited to R500.

E. Correct. After the winding-up process, the company is officially dissolved, and this is recorded and published.

Based on the correctness of the statements:

• Statements A, B, C, and E are correct.
• Statement D is questionable regarding its accuracy.

Thus, the best combination of correct statements would be Statements B, C, and E are correct.