Essay Examples on Coleman College of Health Sciences

Commentary and Critical Analysis

Commentary and Critical Analysis As pertaining to the issue on whether the rescue mechanism is a pro debtor or a pro creditor mechanism we would like to say that the rescue mechanism is more to a pro debtor mechanism than a pro creditor mechanism The rescue mechanism of the corporate voluntary arrangement serves to prevent a company from winding up and whenever there is situation of a company owing a debt to the creditor then the company who is the debtor may also apply this mechanism in order for them to return the debt by using another method Therefore this are the reasons we felt that the rescue mechanism do support the debtor more than the creditor According to the newly amendment of the Companies Act 2016 CA 2016 S 395 had stated that not all companies are entitled to apply the corporate voluntary arrangement CVA of rescue mechanism By virtue of S 396 of CA 2016 it gives the rights to the debtor who is the director of the company to propose a proposal for CVA to solve insolvency Once the proposed proposal is approved by S 400 of CA 2016 then the company is said to have satisfied on its debts owing to the creditor and all the creditors of the company shall bind the CVA

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