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.
1 answer