LAWS3100 Tutorial 9: External administration Week Commencing 17 October 2016 Readings Hanrahan, Ramsay and Stapledon, Commercial Applications of Company Law (2016) (HRS) chapters 24 and 25. Instructions These questions are drawn from HRS, as well as the discussion in Lectures 1 and 2. From your lecture notes and the readings, answer all questions below and bring a copy of your responses to hand in to your tutor. Be prepared to discuss the content of this week in class. Questions 1 Despite promising beginnings, the organic vineyard at Robinvale is not a success. Three years after it is registered, FOW becomes insolvent. Mario, Nick and Peter hold a directors' meeting and appoint an administrator. Commerce Bank, which has loaned $2 million to FOW and is owed four months' worth of unpaid interest on the loan and has a circulating security interest in the wine bottle inventory of FOW. Under the terms of Commerce Bank's security instrument, the \"event of default\" list includes the appointment of an administrator. What can Commerce Bank do to recover the unpaid interest or to enforce its security? a b c Who can appoint a receiver, administrator or liquidator? Strengths and weaknesses of each approach for Commerce Bank. Is the charge over the \"wine bottle inventory\" a charge over all or nearly all of the d company's property? i If yes: ii If no: Would Commerce Bank's position be any different if its security interest was over FOW's 2 inventory of grapes? - s441C Corporations Act. At the second creditors' meeting, what factors would make FOW's creditors favour a winding 3 up and what factors would make them favour a deed of company arrangement? What happens if FOW's creditors decide, at the second creditors' meeting, to execute a deed of company arrangement? What role will Mario, Nick and Peter have in running FOW's 4 business? There are seven types of voidable transactions. List the 7 types and provide a brief explanation of each