You have just graduated as an accountant and obtained a position as a financial accountant with Wind Up Accountants. Your first job is in the insolvency division of the firm. Recently the firm has been appointed as administrator by the directors of a fresh food company.

You have been asked by the partner of the accounting firm to prepare a paper to be handed out to the directors of the company.

In the paper you will need to advise the directors of the following matters:

1. There are two secured creditors, one being the bank which has a non-circulating charge, and one being the supplier of fresh fruit and vegetables which has a circulating charge. What are their rights and can they exercise their security and recover their funds?

Please reference the Corporations Act 2001, case law, or other relevant law if applicable.

Answer rating: 100% (QA)

The insolvency division of Wind Up Accountants has been recently appointed as administrator by the directors of a fresh food company The partner of the accounting firm has asked you to prepare a paper ... View the full answer