Practice question
No creditors attend the scheduled liquidator election. The debtor argues liquidation must remain permanently stalled because no person can ever be appointed without an election result. Which is correct under Section 116?
- The court may appoint a liquidator or instead set another election hearing under the provision
- The case must remain stalled forever
- The debtor automatically appoints itself
- All creditors immediately lose their claims
- The former receiver is categorically disqualified
Legal references
- RA 10142 (FRIA), Sections 4, 7, 9, 17-18, 31-35, 64-70 and 115-121: https://lawphil.net/statutes/repacts/ra2010/ra_10142_2010.html
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