Section 481 of Insolvency Act CAP 53: Creditor not entitled to retain benefit of execution or attachment against liquidator unless creditor completes execution or attachment before commencement of liquidation
(1) If—
(a) a creditor—
(i) has issued execution against the goods or land of a company; or
(ii) has attached any debt due to it; and
(b) the company is subsequently liquidated, the creditor is not entitled to retain the benefit of the execution or attachment against the liquidator unless the creditor has completed the execution or attachment before the commencement of the liquidation.
(2) However—
(a) if a creditor has had notice of a meeting having been convened at which a resolution for voluntary liquidation is to be proposed, the date on which the creditor had notice is, for the purpose of subsection (1), substituted for the date of commencement of the liquidation;
(b) a person who, under a sale conducted by the enforcement officer or other officer charged with the execution of the writ goods of a company on which execution has been levied, purchases the goods in good faith acquires a good title to them as against the liquidator; and
(c) the Court may set aside the rights conferred on the liquidator by subsection (1) in favour of the creditor to such extent and subject to such terms as it considers just.
(3) For purposes of this Act—
(a) an execution against goods is completed by seizure and sale;
(b) an attachment of a debt is completed by receipt of the debt; and
(c) an execution against land is completed by its seizure or by any other event prescribed by the insolvency regulations for the purposes of this section.
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- Section 482 - Duties of judicial enforcement officers charged with execution of writs and other processes involving companies in liquidation
(1) This section applies if—
(a) a company's goods are taken in execution; and
(b) before their sale or the completion of the execution (whether by the receipt or recovery of the full amount of the...
- Section 483 - Power of the Court to rescind contracts entered into by company in liquidation
(1) A person who is, as against the liquidator, entitled to the benefit or subject to the burden of a contract made with the company, may make an application for an order under subsection (2).
(2) On...
- Section 484 - Power of liquidator to transfer assets of company to its employees
(1) On the liquidation of a company (whether by the Court or voluntarily), the liquidator may, in accordance with this section, make any payment that the company has, before the commencement of the...
- Section 485 - Company in liquidation required to state that it is in liquidation in all invoices, letters and other communications
(1) A company that is in liquidation shall ensure that the following documents state that the company is in liquidation:
(a) every invoice, order for goods or services, business letter or order form...
- Section 486 - Interest on debts to be paid if surplus permits
(1) In a company liquidation, interest is payable in accordance with this section on any debt proved in the liquidation, including so much of any such debt as represents interest on the...
- Section 487 - Certain documents relating to company in liquidation to be exempt from stamp duty
(1) If a company is in liquidation, the following documents are exempt from stamp duty—
(a) every transfer relating solely to freehold or leasehold property, or to any interest in, any real or...
- Section 488 - Records of company in liquidation to be evidence
When a company is in liquidation, all records of the company and of the liquidator are (as between the contributories of the company) evidence of the truth of all matters purporting to be recorded in...
- Section 489 - Liquidator to lodge periodic statements with Registrar of Companies with respect to current position of liquidation
(1) If the liquidation of a company is not completed within twelve months after its commencement, the liquidator shall, at such intervals as are prescribed by the insolvency regulations and until the...
- Section 490 - Effect of resolutions passed at adjourned meetings of company's creditors and contributories
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- Section 491 - Court may order meetings to be held to ascertain wishes of creditors or contributories
(1) The Court may—
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- Section 492 - Judicial notice to be taken of documents of the Court
In all proceedings under this Part, all courts and tribunals, all judges and persons acting judicially, and all officers of a court or tribunal, or employed in enforcing the process of a court or...
- Section 493 - Affidavits required to be sworn for purposes of this Part
(1) An affidavit required to be sworn under or for the purposes of this Part may be sworn in Kenya—
(a) before any court, tribunal, judge or person lawfully authorised to take and receive affidavits;...
- Section 494 - Dissolution (voluntary liquidation)
(1) This section applies to a company in voluntary liquidation if the liquidator has sent to the Registrar the liquidator's final account and return in accordance with section 402 or 414.
(2) As soon...
- Section 495 - Early dissolution of company
(1) This section applies when an order for the liquidation of a company has been made by the Court and the Official Receiver is the liquidator of the company.
(2) On being satisfied—
(a) that the...
- Section 496 - Consequence of notice given under section 495(3)
(1) If a notice has been given in accordance with section 495(3), the Official Receiver or any creditor or contributory of the company may apply to the Court for directions under this...
- Section 497 - Dissolution otherwise than under sections 494 - 496
(1) This section applies to a notice that is—
(a) served for the purposes of section 468(9); or
(b) from the Official Receiver that the liquidation of a company by the Court is complete.
(2) As...
- Section 498 - Offence involving commission of fraudulent acts in anticipation of liquidation
(1) This section applies in relation to a company—
(a) in respect of which the Court has made a liquidation order; or
(b) that has passed a resolution for the voluntary liquidation of the...
- Section 499 - Offence involving misconduct committed in course of liquidation of company
(1) This section applies in relation to a company—
(a) in respect of which the Court has made a liquidation order; or
(b) that has passed a resolution for the voluntary liquidation of the...
- Section 500 - Offences involving transactions to defraud creditors of company in liquidation
(1) This section applies in relation to a company that is in liquidation, whether voluntary or by the Court.
(2) An officer or former officer of the company commits an offence if the officer or...
- Section 501 - Offence to falsify documents in relation to company in liquidation
(1) This section applies in relation to a company that is in liquidation, whether voluntary or by the Court.
(2) An officer or contributory of the company commits an offence if, during the...
- Section 502 - Offence to make material omission from statement relating to financial position of company in liquidation
(1) This section applies to a company that is in liquidation, whether voluntary or by the Court.
(2) An officer or former officer of the company commits an offence if, during the liquidation, the...
- Section 503 - Offence to make false representations to creditors of company in liquidation
(1) This section applies to a company that is in liquidation, whether voluntary or by the Court.
(2) An officer or former officer of the company commits an offence if—
(a) the officer or former...
- Section 504 - Power of the Court to make orders against delinquent directors, liquidators, etc.
(1) This section applies to the following persons—
(a) an officer or former officer of a company that is in liquidation (whether by the Court or voluntarily);
(b) a person who is or has acted as the...
- Section 505 - Power of the Court to make orders against officers of company and others found to have participated in fraudulent trading by company in liquidation
(1) A liquidator of a company may make an application to the Court to make an order under subsection
(2) if—
(a) in the course of the liquidation of the company, the liquidator forms the view that a...
- Section 506 - Power of the Court to make orders against officers of company engaging in wrongful trading
(1) This section applies—
(a) to a company that is in insolvent liquidation; and
(b) to a person who, at a time before the commencement of the liquidation, was an officer of the company.
(2) For...
- Section 507 - Supplementary provisions relating to proceedings under sections 505 and 506
(1) On the hearing of an application under section 505 or 506, the liquidator may personally give evidence or call witnesses.
(2) If the Court makes an order under section 505 or 506, it may make...
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(1) This section applies to a person if—
(a) a company is in insolvent liquidation on or after the commencement of this section; and
(b) the person was a director of the company at any time during...
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(1) A person is personally responsible for all the relevant debts of a company if at any time—
(a) the person is involved in the management of the company in contravention of section 508;...
- Section 510 - Prosecution of delinquent officers and members of company in liquidation
(1) If, in the course of liquidating a company, the Court concludes that a person who was at the relevant time a past or present officer, or a member, of the company may have committed an offence in...
- Section 511 - Obligations arising under section 510
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For the purposes of this Part, "unregistered company" includes any association and any company, other than a company registered under the Companies Act (Cap. 486).
- Section 513 - Liquidation of unregistered companies
(1) Subject to the provisions of this Part—
(a) any unregistered company may be liquidated under Pat VI; and
(b) the provisions of that Part relating to liquidation apply to an unregistered...
- Section 514 - Circumstances in which unregistered company can be liquidated
(1) The circumstances in which an unregistered company can be liquidated are as follows—
(a) if the company is dissolved, or has ceased to carry on business, or is carrying on business only for the...
- Section 515 - Company incorporated outside Kenya may be liquidated though dissolved
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(1) If an unregistered company is in liquidation, each person is a contributory who is liable—
(a) to pay or contribute to the payment of any debt or liability of the company;
(b) to pay or...
- Section 517 - Power of the Court to stay or restrain proceedings
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- Section 518 - Actions stayed on liquidation order
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- Section 519 - Provisions of this Part to be cumulative
(1) The provisions of this Part with respect to unregistered companies are in addition to those of Part VI with respect to the liquidation of companies by the Court.
(2) The Court or liquidator may...
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In this Part—
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- Section 521 - What is administration?
For the purposes of this Act—
(a) a company is "under administration" while the appointment of an administrator of the company continues to have effect;
(b) a company "enters administration" when...
- Section 522 - The objectives of administration
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(a) to maintain the company as a going concern;
(b) to achieve a better outcome for the company's creditors as a whole than...
- Section 523 - Who can appoint an administrator?
A person may be appointed as administrator of a company—
(a) by administration order of the Court in accordance with Division 3;
(b) by the holder of a floating charge under section 534; or (c) by...
- Section 524 - Duty of administrator
The administrator of a company shall perform the administrator's functions as quickly and efficiently as is reasonably practicable.
- Section 525 - Status of administrator
An administrator is an officer of the Court, whether or appointed by the Court or not.
- Section 526 - Qualification for appointment of administrators
A person may be appointed as administrator of a company only if the person is an authorised insolvency practitioner.
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(1) Except as provided by subsection (2), a person may not be appointed as administrator of a company that is already under administration.
(2) Subsection (1) is subject to sections 606 to 613 and...
- Section 528 - Administrator not to be appointed if company is in liquidation
(1) A person may not be appointed as administrator of a company that is in liquidation because of— (a) a resolution for voluntary liquidation; or (b) a liquidation order.
(2) Subsection (1)(a) is...
- Section 529 - Administrator not to be appointed in respect of banking, finance and insurance companies
(1) A person may not be appointed under this Part as administrator of—
(a) a company that is a bank; or
(b) a company that enters into contracts of insurance or carries on insurance...
- Section 530 - What is an administration order?
An administration order is an order appointing a person as the administrator of a company and providing for the administration of the company by that person.
- Section 531 - Conditions for making administration orders
The Court may make an administration order in relation to a company only if satisfied—
(a) that the company is or is likely to become unable to pay its debts; and
(b) that the administration order...