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Section 406 of Insolvency Act CAP 53: Meeting of creditors to be convened by company

    

(1) A company that is in the course of liquidation shall—
(a) convene a meeting of the company's creditors for a day not later than the fourteenth day after the day on which there is to be held the company meeting at which the resolution for voluntary liquidation is to be proposed;
(b) send the notices of the creditors' meeting to the creditors not less than seven days before the day on which that meeting is to be held; and
(c) ensure that notice of the creditors' meeting is published—
(i) once in the Gazette;
(ii) once in at least two newspapers circulating in the area in which the company has its principal place of business in Kenya; and (iii) on the company's website (if any).
(2) The company shall ensure that the notice of the creditors' meeting states either—
(a) the name and address of a person authorised to act as an insolvency practitioner in relation to the company who, during the period before the day on which that meeting is to be held, will provide creditors free of charge with such information concerning the company's affairs as the creditors may reasonably require; or
(b) a place in the area in which the company has its principal place of business in Kenya where, on the two business days occurring immediately before the day on which that meeting is to be held, a list of the names and addresses of the company's creditors will be available for inspection free of charge.
(3) If the company's principal place of business was located in different places at different times during the relevant period, the duties imposed by subsections (1)(c) and (2)(b) apply separately in relation to each of those places.
(4) If the company had no place of business in Kenya during the relevant period, the references in subsections (1)(c) and (3) to the company's principal place of business are taken to be references to its registered office.
(5) In this section, "the relevant period" means the period of six months immediately preceding the day on which were sent the notices convening the company meeting at which it was resolved that the company be liquidated voluntarily.
(6) If the company without reasonable excuse fails to comply with a requirement of subsection (1) or (2), the company, and each officer of the company who is in default, commit an offence and on conviction are each liable to a fine not exceeding five hundred thousand shillings.
(7) If, after a company or any of its officers is convicted of an offence under subsection (6), the company continues to fail to comply with the relevant requirement, the company, and each officer
of the company who is in default, commit a further offence on each day on which the failure continues and on conviction are each liable to a fine not exceeding fifty thousand shillings for each such offence.

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Disclaimer: This document is not to be taken as legal advise.

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