Question

Section 14(5) of KCS Act, commonly addresses creditor protections. Which scenario most clearly triggers a duty to notify creditors?

• A. A voluntary dissolution of the cooperative without settling all debts.
• B. A conversion or reorganization that may prejudice creditor claims
• C. An amendment to the cooperative's bylaws that reduces share capital.
• D. The appointment of a new managing director without prior creditor approval.

Answer 1

Answer:

B. A conversion or reorganization that may prejudice creditor claims

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