Terminating a business

Sole traders

Business is terminated in the case of

a)       (1)_________________ → executors become in charge of the trader’s affairs

b)      (2)_________________: trader cannot continue in business,

                                              he is an (3)_________________ bankrupt

Partnership

(4)_________________ partnership terminates upon death/bankruptcy/retirement of a partner

                                               (unless there is an agreement to continue)

            X

(5)_________ ________ partnership is not dissolved by death/bankruptcy/retirement of a partner

Insolvency in UK

Insolvency can be defined as the inability of an individual or company to pay debts when they
become (6) ____________________.

The procedures applying to individuals are:

a)  (7) ____________________ (konkurz, úpadek)

b) individual (8)  ____________ _______________    (restrukturalizace dluhu se souhlasem věřitelů a
soudu)

c) fast track voluntary arrangement

The procedures applying to companies are:

a) (9) _________ ___________  = winding up by the court

b) administrative (10)  __________________  (nucená správa)

c)  administration  ((nařízená) správa (společnosti))

d) company  voluntary arrangement

e) creditors'  voluntary liquidation or members'  voluntary liquidation

Officials involved in insolvency proceedings:

official receivers

–        civil servants and officers appointed by the (11)_________________

–        administer cases

–        investigate the affairs of individuals in (12)_________________ and companies in
(13)_________________  _________________

insolvency practitioners

–        work in private sector: accountants, (14)_________________

–        can act as (15)_________________ in creditors’ voluntary liquidations, administrative
receivers and administrators

OR/IP act as trustees


Bankruptcy in  UK (applies to individuals = sole traders and individual members of a partnership)


Procedure:

a bankruptcy petition  is filed with the court →

the court issues (16)____________________  →

the  (17)____________________  becomes "bankrupt" →

the property vests in a (18)_________________ (OR or IP) →

OR/IP realizes (19)____________________ ____________________  →

OP/IP pays fees, costs and distributes the rest to the (20) ____________________


Compulsory liquidation in UK (applies to companies)

a winding-up petition is filed with the court ®

the court issues (21)____________ ________ ®

the court notifies the OR who sends notice to the (22)____________________ ®

members/directors no longer in control ®

OR (IP if significant (23)____________________) handles liquidation ®

OR/IP is released ® the company is (24)____________________



Match the words to their definitions/synonyms:


bankrupt



executor


bankruptcy


wound-up


dissolved


discharged

the person administering a dead person’s property


the state of being unable to pay debts


a person not being able to pay debts


freed from bankruptcy


liquidated


officially terminated



Make the pairs to create six terms:


involuntary ………………


bankruptcy ………………


general ………………


registered ………………


legal ………………


official ………………


person


receiver


petition


proceedings


office


meeting




KEY:

(1)   death

(2)   bankruptcy

(3)   undischarged

(4)   ordinary

(5)   limited liability

(6)   due

(7)   bankruptcy

(8)   voluntary arrangement

(9)   compulsory liquidation

(10)                      receivership

(11)                      court

(12)                      bankruptcy

(13)                      compulsory liquidation

(14)                      solicitors

(15)                      liquidators

(16)                      bankruptcy order

(17)                      debtor

(18)                      trustee

(19)                      bankrupt’s estate/property/assets

(20)                      creditors

(21)                      winding-up order

(22)                      directors

(23)                      assests/property

(24)                      dissolved