B Com Exam > B Com Questions > What is the minimum threshold for creditors' ...
Start Learning for Free
What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?
- a)5% of the total outstanding debt
- b)10% of the shareholding
- c)15% of the total outstanding debt
- d)20% of the shareholding
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
What is the minimum threshold for creditors' outstanding debt to raise...
Creditors holding outstanding debt amounting to not less than five percent of the total outstanding debt can raise objections to a compromise or arrangement.
Free Test
| FREE | Start Free Test |
Community Answer
What is the minimum threshold for creditors' outstanding debt to raise...
Threshold for Creditors' Outstanding Debt Objection
The minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement is 5% of the total outstanding debt. This means that if creditors holding at least 5% of the total outstanding debt object to the proposed compromise or arrangement, their objection must be taken into consideration.
Importance of the Threshold
- The threshold ensures that creditors with a significant stake in the outstanding debt have the ability to raise objections and influence the decision-making process.
- It provides a level of protection for creditors and ensures that their interests are taken into account during the restructuring or compromise process.
Significance of the 5% Threshold
- The 5% threshold is considered a reasonable minimum requirement to ensure that the objections raised by creditors are taken seriously and given due consideration.
- It strikes a balance between allowing creditors with a substantial interest to raise objections and preventing frivolous objections from creditors with minimal stakes.
Conclusion
In conclusion, the 5% threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement plays a crucial role in the restructuring process. It ensures that creditors with a significant interest have a voice in the decision-making process while preventing undue influence from creditors with minimal stakes.
The minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement is 5% of the total outstanding debt. This means that if creditors holding at least 5% of the total outstanding debt object to the proposed compromise or arrangement, their objection must be taken into consideration.
Importance of the Threshold
- The threshold ensures that creditors with a significant stake in the outstanding debt have the ability to raise objections and influence the decision-making process.
- It provides a level of protection for creditors and ensures that their interests are taken into account during the restructuring or compromise process.
Significance of the 5% Threshold
- The 5% threshold is considered a reasonable minimum requirement to ensure that the objections raised by creditors are taken seriously and given due consideration.
- It strikes a balance between allowing creditors with a substantial interest to raise objections and preventing frivolous objections from creditors with minimal stakes.
Conclusion
In conclusion, the 5% threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement plays a crucial role in the restructuring process. It ensures that creditors with a significant interest have a voice in the decision-making process while preventing undue influence from creditors with minimal stakes.
|
Explore Courses for B Com exam
|
|
What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer?
Question Description
What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer?.
What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer?.
Solutions for What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?a)5% of the total outstanding debtb)10% of the shareholdingc)15% of the total outstanding debtd)20% of the shareholdingCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup