Activity 5 - The second appointment (Self-Assessment) Introduction In this activity, you will read a further scenario about Mr Jones and answer the questions. Scenario 5: The second appointment Your client, Mr Jones has made a list of his assets, his debts and other additional of information and the appointed trustee enquires about certain transactions in terms whereof Mr Jones disposed of the following assets - He sold and transferred an immovable property to Geo Mane four months before he was sequestrated. He also returned movable property to his brother which his brother borrowed to him for his personal use for an indefinite period after he was sequestrated. He wants to know whether he has committed an offence in terms of the Insolvency Act. He would also like to know about the consequences of the sequestration on his wife. Instructions: Second appointment activity Questions: 1. Who can apply for voluntary surrender of an estate in a marriage where the parties are married - 1.1 in community or property; 1.2 in terms of a customary marriage; (2) 2. Will it make a difference if the parties referred to in question 1.2 entered into an ante- nuptial contract and their marriage is - 2.1 a marriage out of community of property with the inclusion of the accrual system; 2.2 a marriage out of community of property without the accrual system. Provide a short reason for your answer. (3) 3. May the following persons apply for the rehabilitation of an insolvent estate? Answer only Yes or No (5) 3.1 A husband married in community of property; 3.2 A divorcee who was married in community of property; 3.3 The widow of an insolvent for the rehabilitation of her late husband's estate; 3.4 A director of a company for the rehabilitation of an insolvent company; 3.5 A duly authorized agent of an insolvent when the insolvent is living in residing in South Africa. 4. Advise your client on the type of dispositions he has made and of the legal consequences of such depositions made. In your answer, you must explain what a disposition is in terms of the Insolvency Act and give an example of a disposition. (3) 5. Will it make any difference if the disposition was made in terms of a court order? (1) 6. Will it make a difference if an immovable property that forms part of the insolvent estate was sold below its current market value? (1) 7. Explain how in terms of the common law the Actio Pauliana may be used to set aside a disposition