To assess the correctness of the statements:
A. Legal insolvency describes a person who has insufficient assets to discharge his liabilities.
- This statement is correct; legal insolvency indeed refers to a situation where an individual cannot meet their financial obligations due to inadequate assets.
B. When the concursus creditorum is established, individual creditors lose their rights to apply for execution orders against the debtor.
- This statement is also correct; concursus creditorum signifies the collective grouping of creditors and usually means that individual creditors cannot individually pursue the debtor.
C. A debtor with only liabilities may apply for voluntary surrender of his estate.
- This statement is generally accepted as correct; a debtor facing insolvency can apply for voluntary surrender regardless of whether they have assets or only liabilities.
D. Where a trustee fails to lodge an account or to pay money due to the Master or a creditor, he can be sentenced to payment of a maximum fine of R500.
- This statement might be incorrect, as fines can vary, and specifics about the penalties for negligence in trust account management would require verification in applicable laws.
E. Companies are registered with CIPC.
- This statement is correct; in South Africa, all companies are registered with the Companies and Intellectual Property Commission (CIPC).
Evaluating the combinations:
- Statements B, C, and E are correct.
- Statements B, C, and D are incorrect due to potential inaccuracy in D.
- Statements A, C, and D are incorrect due to potential inaccuracy in D.
- All the statements cannot be correct due to the possible issue with D.
- Statements A, C, and E are correct.
Thus, the best combination of correct statements is Statements B, C, and E are correct.
1 answer