Ama Dumas is an entrepreneur and has several businesses. In 2013, she formed AmaDu Ltd to provide laundering services across the regions. She and her husband are the directors of the company. The shareholder holding is as follows: 65% for Ama and 35% for Mr Dumas.
At present, the company has 5 branches in Ghana, namely Accra, Takoradi, Kumasi, Tamale and Cape Coast.
On 3 June 2015, the company took a loan of GHS5 million from ABSA Bank to finance its operations. The assets of the company were used as collateral for the loan. The company was keeping up with the repayment of the loan until covid-19 affected its business from March 2020. The outstanding loan and interest stood at 3,200,000 as of 31 May 2021.
The directors of the company have filed for official liquidation. It is clear that the company cannot pay its debts.
Ama Dumas and her husband are reputed for being wealthy and have properties located at East Legon, Cantonment, Trasacco Valley and North Legon.
Advise the liquidator
a) Whether or not the personal properties of the shareholders can be used to pay off the debt of the company?
b) Whether there are circumstances that the shareholders’ property may be used allowed to be used to pay off the debt?

Answer rating: 100% (QA)

aThe separate entity concept allow the firm and the ... View the full answer