Comprehensive Study Insolvency Australian †Myassignmenthelp.Com

Question: Discuss About The Comprehensive Study Insolvency Australian? Answer: Introducation An organization or an individual, which can no longer meet the financial commitments with the creditors, and pay its debts on time, is deemed to be insolvent. Before a company is declared as insolvent, the higher authorities would try to make alternative arrangements for the payments by informal agreements with its lenders. Insolvency in most cases arises from an improper planning of cash flow of a business and lack of proper strategies to counter unexpected financial calamities (Mntysaari, 2011). According to Section A of the Corporations Act, a company is insolvent if it is unable to pay its debts when it becomes due and has defaulted on its outstanding payments on more than one occassion. The different indicators that a company is becoming insolvent are: When the cheques issued by a company is dishonoured on more than one occasion. When there are increasing legal complications for the company in the form of warrants or summons. When the company faces increasing difficulties to pay its creditors and finds it hard to arrange alternative sources of funding on time. To counter the risk of insolvency, the Board of Directors can try negotiating with the creditors to work out a workable payment method (Valackien? and Virbickait?, 2011). The directors may try to convince the creditors by devising a payment frequency and a fixed payment amount which could be met every month without fail. All the unwanted and fringe expenses are to be avoided immediately. The excess number of staff, the advertising expenses and the rents paid for the premises can be reduced by confining themselves to a more compact space. Other measures like selling the assets of the company and chasing the debts can also help the company recover from the impending danger of dissolution after insolvency. There are many potential risks for the Board of Directors in the event of a company being insolvent. The higher authorities in a Company would always be well aware of the current financial position of the Company and the associated risks if it would be winding up soon (Kitromilides, 2011). If the Company fails to repay its debts, the liabilities of the company would be passed on to the Directors under certain situations. One such circumstance is when the Director of the Company decides to be the guarantor for the debts taken over the personal assets. In such a scenario, he would be held responsible for the repayment of the debts. Similarly, the Company is not supposed to be involved in trade while it is already or soon to be insolvent. It is the personal responsibility of the Board of Directors to ensure that the investors are not in potential risk by involving in trading while at the risk of being insolvent. Another scenario is when a higher authority of the Company decides to inten tionally transfer the assets of the Company to a new one. This transfer may be in the form of transfer of funds or transfer of assets to the new Company. There is also another term associated with insolvent companies that are involved in trading called as wrongful trading. Wrongful trading denotes that the company has been involved in trading even after the Directors had been able to conclude that further investing in the company would incur huge losses to the potential investors (Arsalidou, 2010). If there is an impending threat of a Company being insolvent, there are a few expedient solutions that the Board of Directors can adopt as feasible measures to counter an immediate dissolution. The most important thing to be done in such a scenario is to try and convince the Creditors that the debt would be paid in full without delay (Mazarr, 2012). An informal agreement is made with the creditors which ensure that the payments would be done on a regular basis on convenient instalments. These conditions should be agreeable to both the parties. This informal agreement is made binding by certain regulations called as the Company voluntary Agreement. The CVA as it is more commonly known gives an assurance to the creditors that the payment would be done in whole or in part, within a stipulated time. A formal procedure followed by the Board of Directors in times of insolvency is to place the companies operation under an Administration. While being in an Administration, all the operations of the Company are transferred to an individual called as the Insolvency Practitioner. Being under an Administration would mean that the Company gets considerable time and leeway during the insolvency period to recover from its financial problems (Routledge and Morrison, 2012). It gives an option to the Directors to gain some time for repayment and also not having to pay in full to the Creditors. The Administrator could be assigned with the responsibility of selling the Business and try to salvage more through the assets than what could be gained from dissolution. Being under an administration could prove advantageous to both the Creditors and the company administration as the creditors cannot enforce any legal action against the company while it is under an administration. The administrator may give a few proposals workable for both the parties whose acceptance is left up to the discretion of the Creditors. To recover from immediate winding up certain practices are adopted by companies all over the world. One of the most often quoted solution for insolvency is intervention. An intervention is a procedure in which an external entity is introduced to take control of the business operations to bail out a company from an impending difficulty, which would be financial in nature. Interventions are mostly done to rectify the weak areas of the company. The method of intervention in a business may vary to a great extent depending upon the current problems and their severity. Two types of interventions occur which could be voluntary or involuntary in nature. Administration, introduction of a Insolvency Practitioner and Receivership are a few methods of voluntary intervention. Winding up the companys operations entirely by liquidation or dissolution comes under involuntary intervention. A controlling body called ASIC which stands for the Australian Securities and Investments Commission was creat ed to independently regulate the Corporate Law and Consumer Protection Law towards the interest of the companies throughout Australia (Schwartz, 2013). The scope of ASIC and its regulatory powers spans over different areas such as banking, insurance and investments. The primary objective of ASIC is to preserve the interests of the Creditors, Investors and Consumers in Australia by adhering closely to theAustralian Securities and Investments Commission Act, 2001. The duties of ASIC ensures that the financial markets of Australia are stable and transparent, providing safety to the investors and consumers in their financial transactions with a company. Apart from ASIC, another regulating agency called AFSA was set up under the Public Service Act in 1999 for managing and regulating the personal insolvency system. The AFSA which stands for the Australian Financial Security Authority provides insolvency services and regulates the bankruptcy and personal properties security laws. The duties performed by AFSA include the registering of all agreements such as the personal insolvency and debt agreements pertaining to bankruptcy (Kraakman et al., 2017). The AFSA ensures the financial compliance are maintained by the defaulters or the administrating authorities of a company according to the Bankruptcy Act. The steps followed by these regulating agencies, especially the ASIC, helps in maintaining the confidence of the creditors in the insolvent companies by implementing new reforms and initiatives which are workable and practical (Xu et. al, 2011). The ASIC also helps in regulating the actions of the Administrators, Insolvency Practitioners and Receivers when the control of an insolvent company is being transferred to them. These regulating bodies also supervise the actions of a liquidator to settle the debts of a company if all other alternative measures fail. The insolvency rates of the Australian Companies is enumerated and published by a regulatory board called as The Australian Financial Security Authority (AFSA). The AFSA releases and publishes the bankruptcy and insolvency rates of Australian Companies each financial year. The statistics of the data is taken very precisely from both the debtors and the creditors. The national average of the total insolvency statistics is collected on a territorial basis which ranges from provincial to state levels before being tallied and estimated for the entire nation (Gallery, et. al, 2008). Insolvency statistic reports termed as Series 1 and Series 2 is released by the Australian Securities and Investments Commission (ASIC) on a monthly frequency. Series 1 report denotes the companies that enter into an external administration in case of insolvency, and Series 2 indicates the total number of insolvency appointments done. The data source for both thee reports is the Forms 505, which is an intimation that an external administrator has been appointed for an insolvent company and is lodged by the administrator (Wyburn, 2014). According to the statistics for the latest quarter for the financial year 2016 2017, the companies that had to enter into external administration had increased by a margin of 28%. The number of external appointments made came around 2200, an estimated 400 increase from the previous quarter. The total number of companies that appointed an external administrator related to insolvency remained as low as around 4% compared to the previous quarter. The statistical report for the current quarter in 2017 denotes that personal businesses and construction were the industries that were reported to have the highest number of insolvency rates. There are many topical issues faced by the Company Directors in Australia in case of insolvency. If the insolvency leads to liquidation, there may be chances of a criminal investigation not only on the business transactions, but the general conduct of either one or all of the Directorial Board members (Hensher et.al, 2015). The penalties in case of a misinterpretation or fraud involve a restriction from holding any authority in a company for a stipulated period. Or it could be a legal prosecution that may even end up in a prison sentence for the Companies Director. If a member of the Directorial Board acts as a personal guarantor for the Creditors, the debt of the company can be enforced upon him if there is a failure in the repayment. This will be a personal liability as the debts could be due to the misinterpretations of finance by the authorities. There may be even a risk of all the assets of the business being sold to pay off the remaining debts to the creditors. This may also in clude the statutory fees of the legal practitioners like the insolvency practitioner, receiver or the administrator. Once the company becomes insolvent, the experienced employees that were associated with the company have to look for other vacancies. This can be disadvantageous if the authority plans to rebuild the company with the expertise of its former employees. Other than being wound up by the Creditors there are certain steps that could be followed by the administration to avert the possible dissolution or liquidation. The practical thing to follow after insolvency or a financial accounting dilemma is to control and curtail the possible expenditure (Amankwah-Amoah and Durugbo, 2016). The Board of Directors can try for alternative source of funding or launch an emergency appeal to protect themselves from the impending risks of getting wounded up. Handing over the reins of the Company to the Insolvency Practitioner may be highly recommended as the expertise of such a person could bail out the company from the crisis, provided that the risks are maintainable. The Directorial Board could also consider the possibilities of a merger with another business, by retaining most of the former employees. This could help the management in utilizing the expertise of the experienced employees. Renegotiation with the Creditors could be considered as an opt ion, with specific regulations on the amount to be paid at a fixed frequency. This could buy the management more time to strategize better and come out with better solutions. From the extensive research on successful Australian Companies like Wesfarmers and BHPBilliton, few precautionary measures are identified to avoid the risks of being insolvent. The foremost principle for a trading company is to negotiate regularly with the customers on timely payments. Maintaining a smooth flow of cash by invoicing the customers on time and ensuring the timely payment would help the company in deflecting any possible threats of insolvency (Allie et.al, 2016). Bad debts should be disallowed at any cost and there should be strict follow up measures to chase debts and collect them from the concerned parties. Overtrading is another trap that small scale businesses fall into, taking up more orders than the existing resources can handle. This would only lead to complications for the business in the future. Keeping a check on the stock at regular intervals and disposing unused assets can help in maintaining the cash flow. If a strict follow up is made on all these measures, the risks of any impending financial issues for the company and the Board of Directors can be avoided. References Allie, J., West, D. and Willows, G., 2016. The value of financial advice: An analysis of the investment performance of advised and non-advised individual investors.Investment Analysts Journal,45(Supplement 1), pp.63-74. Amankwah-Amoah, J. and Durugbo, C., 2016. The rise and fall of technology companies: The evolutional phase model of ST-Ericsson's dissolution.Technological Forecasting and Social Change,102, pp.21-33. Arsalidou, D., 2010. The banking crisis: rethinking and refining the accountability of bank directors.Journal of Business Law,4, pp.284-310. Gallery, G., Cooper, E. and Sweeting, J., 2008. Corporate disclosure quality: lessons from Australian companies on the impact of adopting International Financial Reporting Standards.Australian Accounting Review,18(3), pp.257-273. Hensher, D.A., Jones, S. and Greene, W.H., 2007. An error component logit analysis of corporate bankruptcy and insolvency risk in Australia.Economic Record,83(260), pp.86-103. Kitromilides, Y., 2011. Deficit reduction, the age of austerity, and the paradox of insolvency.Journal of Post Keynesian Economics,33(3), pp.517-536. Kraakman, R., Armour, J. and Davies, P., 2017.The anatomy of corporate law: a comparative and functional approach. Oxford University Press. Mntysaari, P., 2011.Organising the firm: theories of commercial law, corporate governance and corporate law. Springer Science Business Media. Mazarr, M.J., 2012. The risks of ignoring strategic insolvency.The Washington Quarterly,35(4), pp.7-22. Routledge, J. and Morrison, D., 2012. Insolvency administration as a strategic response to financial distress.Australian Journal of Management,37(3), pp.441-459. Schwartz, C., 2013. G20 Financial Regulatory Reforms and Australia.RBA Bulletin, September, pp.77-85. Valackien?, A. and Virbickait?, R., 2011. Conceptualization of crisis situation in a company.Journal of Business Economics and Management,12(2), pp.317-331. Wyburn, M., 2014. Debt agreements for consumers under bankruptcy law in Australia and developing international principles and standards for personal insolvency.International Insolvency Review,23(2), pp.101-121. Xu, Y., Jiang, A.L., Fargher, N. and Carson, E., 2011. Audit reports in Australia during the global financial crisis.Australian Accounting Review,21(1), pp.22-31.

Gre Argument Essay - How to Make a Good Sample Gre Argument Essay

Gre Argument Essay - How to Make a Good Sample Gre Argument EssayWriting a good Gre argument essay is not as difficult as one might think it is. With the numerous study guides on the Internet, you can find any useful knowledge that you need, and this will make your study sessions more enjoyable. A good study guide should provide excellent content in a format that you can understand, so there's no need to worry about if you can write an essay or not.Since there are various types of essays available in the market, you should know the kinds of topics that are suitable for them. In order to make sure that you are getting the best possible study guide for your essay topic, you should know where to find samples of essay written by different students.A sample essay is an excellent way to get some ideas on how to format your own essay. However, the samples can be misleading, so you need to make sure that the essay that you will be writing is written by a native English speaker.Since the Gre argument guide has different topics, it can be confusing to determine which essays you are supposed to write. However, you don't have to fret because of this, because there are several helpful sample essays on the Internet that can help you out.The best part about using the sample essays is that they can give you the best perspective on the kind of essays that you should write in your own essay. You can learn from their mistakes and make sure that the content you will write will be grammatically correct.Even though the essays may seem like an easy way to learn how to write an essay, you have to be careful of what you are getting yourself into. Because of the complicated nature of English grammar, even the easiest of essay topics will require a lot of focus on your part, especially if you will be writing an essay that is written in a formal manner.Since the writing style that you use when writing an essay is a main aspect of it, you have to make sure that you will be able to follow t he rules that govern formal essays. This means that if you are already studying essays, you must make sure that you will also be able to follow proper format when writing your own essay.It is important that you will be able to follow the rules when writing an essay, because they are set by the educational system as well as the school that you are going to attend. With this in mind, you have to make sure that you will be able to follow them.

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Nascot and Park Essay How do the land use, housing and environmental quality in Tudor, Callowland, Nascot and Park wards of Watford affect the relative desirability of the wards? I will now discuss primary data regarding the four wards, and not to include any secondary data, including census data or researched data from the Internet. A colour coded map will provide an easy visual report of the distribution and separation of various housing types, as well a where forests and parks are laid out, and link that to the environmental quality of each of the four wards. I will discus each ward separately and then conclude it in a final paragraph at the end of this section. The concluding paragraph will contain graphs and charts to help enhance the comparisons. Of course when discussing the desirability of somewhere, you have to take into account who it is for. For example, a student would not live in a 5 bedroom detached house. PARK WARD This was the first ward visited and due to the fact that this was the first time I had visited these wards, this ward has left an indentation in my mind of my first impression of Watford. We commenced north up Hempstead road and took a left into Stratford way, where our fieldwork began. Small detached housing covered this area. The field sketch below shows you how close the houses boundaries are, as well as the style and age of the houses. When we were at the junction of Stratford Way and Parkside Drive, the first environmental quality survey was taken. The results have been tabulated within the comparison and concluding paragraph at the end of this section. We then took a right, and headed up Parkside Drive, taking into account that we were on the boundary of detached housing and the Cassiobury Park. As we continued up Parkside Drive, we were confronted with semi-detached housing immediately after Richmond Drive on the right hand side. Semi-Detached housing could now be seen on either side of the road. We were due to take the next turning on the right which led us into Langley Way. On the junction of Langley Way and Parkside Drive, the second environmental quality survey was taken. As we turned up into Langley Way, we noticed semi-detached housing on either side of the road until Richmond road on the right, and until Bellmount Wood Avenue on the left. The stream of detached housing continued from there onwards. We carried on up Langley Way, until we met a roundabout which split Langley Way and Cassiobury Drive. Our first sighting of local shops were seen on the opposite side of the roundabout, this is coloured in RED on the colour-coded map. Besides these few shops and a pub on the left hand side, detached housing was all around us. We contined up Langley Way until Devereux Drive was seen at a 90 angle to Langley Way. We proceeded left and were still surrounded by detached housing. At the top of Devereux Drive, we could see that the further up we went, the more trees and greenery were to be seen behind the houses, and at the top of the road, we took a footpath left which led us into Rough Wood. We followed the footpath round until we came into Glen Way, which was where we came across our first sightings of terraced houses. The third and final environmental quality survey for this ward was taken here. We followed Glen Way round to the right and hit the main road called Hempstead Road where we crossed onto the other side and took a left until we came across Rosecroft Drive on the right hand side. Where we left Glen Way and entered Hempstead Road, was the border between the two wards, Park and Nascot. So in summary, Park ward contains small detached houses in a calm atmosphere and well kept away from the busy Hempstead Road. Even though Cassiobury Drive, Parkside Drive and Woodland Drive are the three main roads of Park ward, they do not encounter problems of traffic which leaves Park ward as a calm and family-friendly area. The large park within the ward will indefinitely contribute to the property prices as property prices are strongly based on location, location, location, and due to the fact that they are detached, this leaves a good image in my mind of my first impression of Watford. Nascot Ward As we commenced our journey down Hempstead Road and into Rosecroft Drive, we noticed that although Hempstead Road is very busy, the houses within Rosecroft Drive and the surrounding road were fairly large detached houses. At the junction of The Ridgeway, and Rosecroft Drive, the first environmental quality survey of this ward was taken, which received high marks when taking into account its location next to an extremely busy road. We then took a right down The Ridgeway, and noticed how the houses were in good keep and fairly big. The road we were in (The Ridgeway) was fairly quiet and in good condition due to the fact that off road/private parking was available. The field sketch below, shows a typical house within Nascot ward.