To determine the most correct statement or best combination of statements, we need to evaluate each statement individually:
A. The Companies and Intellectual Property Commission is required to approve a business rescue application.
- This statement is incorrect. In South African law, a business rescue application does not require approval from the Companies and Intellectual Property Commission (CIPC); it is done through a court process.
B. Before an insolvency provision can be considered unconstitutional, it must first be declared as such by the constitutional court.
- This statement is correct. For a law to be deemed unconstitutional in South Africa, it must be ruled as such by the Constitutional Court.
C. The South African Law Reform Commission developed a bill to consolidate insolvency practices.
- This statement is correct. The South African Law Reform Commission has indeed worked on reforming and consolidating the laws surrounding insolvency.
D. Voluntary surrender is when the applicant is the insolvent debtor.
- This statement is correct. Voluntary surrender refers to the debtor's decision to surrender their estate for liquidation.
E. The main objective of a liquidation 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.
- This statement is correct. The purpose of liquidation is to fairly distribute a debtor's assets among creditors.
Now, summarizing the evaluations:
- A is incorrect.
- B, C, D, and E are correct.
Considering the options:
- Statements A, C, and D are correct (incorrect because A is wrong).
- Statements B, C and E are correct (correct).
- All the statements are correct (incorrect because A is wrong).
- Statements B, C and D are correct (correct).
- Statements A, C and E are correct (incorrect because A is wrong).
The best answer is Statements B, C and E are correct.
1 answer