Question

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

A. Legal insolvency describes a person who has insufficient assets to discharge his liabilities.

B. When the concursus creditorum is established, individual creditors lose their rights to apply for execution orders against the debtor.

C. A debtor with only liabilities may apply for voluntary surrender of his estate.

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.

E. Companies are registered with CIPC.


All the statements are correct.


Statements B, C and E are correct.


Statements B, C and D are correct.


Statements A, C and E are correct.


Statements A, C, and D are correct.

Answer 1

To evaluate the correctness of each statement provided:

A. Legal insolvency describes a person who has insufficient assets to discharge his liabilities. - **Correct**

B. When the concursus creditorum is established, individual creditors lose their rights to apply for execution orders against the debtor. - **Correct** (in the context of insolvency, this refers to the pooling of creditors' claims)

C. A debtor with only liabilities may apply for voluntary surrender of his estate. - **Correct** (though it is unusual, this can be an option for debtors)

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. - **The value of the fine may not be correct in all jurisdictions or contexts**; however, the idea that a trustee can face penalties is generally accurate.

E. Companies are registered with CIPC. - **Correct** (CIPC refers to the Companies and Intellectual Property Commission in South Africa)

Based on the evaluations:

- Statements A, B, C, and E are correct.
- The actual limitations of statement D may vary depending on the legal system involved.

Looking at the options provided:

- "All the statements are correct." is **not accurate** due to the uncertainty about statement D.
- "Statements B, C and E are correct." is **correct** and includes C, which is valid under the criteria.
- "Statements B, C and D are correct." contains D, which is questionable.
- "Statements A, C and E are correct." is also valid as A, C, and E are true.
- "Statements A, C, and D are correct." includes D but has uncertainties.

Thus, the best combination of correct statements is:

**Statements B, C, and E are correct.**