Study Unit 2 Tutorial Exercise
1. Which one of the following persons below may apply for the voluntary surrender of
the estate of a natural person?
A. Any creditor of the debtor.
B. The Master of the High Court.
C. The insolvent debtor or his/her duly authorised agent.
D. The debtor’s spouse, if they are married in community of property.
2. For an agent to properly apply for voluntary surrender, the agent must:
A. Be appointed orally by the debtor.
B. Have implied authority to act.
C. Be expressly authorised by a power of attorney.
D. Be a legal practitioner with authority to appear in the High Court of South Africa.
3. Who may apply for the surrender of the estate of a deceased debtor?
A. The surviving spouse.
B. The executor.
C. A curator bonis.
D. The Master of the High Court
4. In the case of a partnership, who must apply for the voluntary surrender of the
partnership estate?
A. Any one of the partners.
B. The managing partner only
C. All ordinary partners or their duly authorised agents
D. Only partners residing outside the Republic
5. Once a notice of intention to surrender has been published, the sale in execution of
attached property is generally prohibited. True/ False
6. How many substantive requirements must be satisfied for voluntary surrender?
A. One.
B. Two.
C. Three.
D. Four.
7. Which of the following is NOT a substantive requirement for voluntary surrender?
A. The debtor’s estate is insolvent
B. The sequestration will be to the advantage of creditors
C. Compliance with section 4 notice requirements
D. There is sufficient free residue to cover costs
8. On whom does the onus of proof rest to establish the substantive requirements in a
voluntary surrender application?
A. The creditors.
B. The Master of the High Court.
C. The High Court.
D. The debtor.
9. What document is primarily used to establish whether the debtor’s estate is insolvent?
A. Founding affidavit.
B. Notice of motion.
C. Statement of Affairs.
D. Master’s report.
10. What does the term “free residue” refer to?
A. All assets of the debtor.
B. Assets after payment of secured creditors only.
C. Property available to pay sequestration costs.
D. Future income of the debtor.
11. The Insolvency Act requires that three substantive requirements must be satisfied
before a court will accept a voluntary surrender. True/ False
12. A guarantee to the Master of the High Court can cure an insufficient free residue
when:
A. There is clearly no free residue.
B. The guarantee creates an asset in the estate.
C. There is uncertainty about the sufficiency of the free residue.
D. The debtor has no liabilities.
13. For sequestration to be to the advantage of creditors, it must:
A. Benefit only one creditor.
B. Result in imprisonment of the debtor.
C. Yield at least a not negligible dividend.
D. Merely cover the costs of sequestration.
14. How long before the court application must the notice of intention to surrender be
published?
A. At least 7 days but not more than 14 days.
B. At least 14 days but not more than 30 days.
C. At least 30 days but not more than 60 days.
D. Exactly 21 days.
15. Which of the following is an effect of publishing a notice of intention to surrender
under the Insolvency Act 24 of 1936?
A. All civil and criminal proceedings are suspended.
B. Ownership of attached property immediately transfers to the Master.
C. Sale in execution of attached property is generally prohibited.
D. Creditors lose their claims against the debtor.
16. Only the insolvent debtor himself or herself may apply for voluntary surrender, and
not an agent. True/ False.
17. A guarantee to the Master can always cure an insufficient free residue in a voluntary
surrender application. True/ False.
18. An agent applying for voluntary surrender must be expressly authorised by a power
of attorney. True/ False.
19. A single partner may apply for the voluntary surrender of a partnership estate on
behalf of all partners. True/ False.
20. For sequestration to be to the advantage of creditors, it must result in at least a not
negligible dividend. True/ False.
Solutions
1. C; 2.C; 3. B; 4.C; 5.T; 6.C; 7.C; 8.D; 9.C; 10.C; 11.T; 12.C; 13.C; 14.B; 15.C; 16. F; 17.F;
18.T; 19.F; 20.T.