Section 571 of Insolvency Act CAP 53: Administrator's proposals can be revised
(1) This section applies if—
(a) an administrator's proposals have been approved (with or without modification) at an initial creditors' meeting;
(b) the administrator proposes a revision to the proposals; and
(c) the administrator believes that the proposed revision is substantial.
(2) When this section applies, the administrator shall—
(a) convene a creditors' meeting;
(b) send a statement of the proposed revision with the notice of the meeting sent to each creditor;
(c) send a copy of the statement, within the period prescribed by the insolvency regulations for the purposes of this paragraph, to each member of the company of whose address the administrator is aware; and
(d) present a copy of the statement to the meeting.
(3) An administrator complies with subsection (2)(c) by publishing a notice undertaking to provide a copy of the statement free of charge to any member of the company who applies in writing to the administrator at an address specified in the notice.
(4) The administrator shall publish the notice in such publications and within such period as may be prescribed by the insolvency regulations for the purposes of this subsection.
(5) A creditors' meeting to which a proposed revision is presented shall consider it and may— (a) approve it without modification; or
(b) approve it with modifications to which the administrator consents.
(6) As soon as practicable after the conclusion of a creditors' meeting, the administrator— (a) shall report every decision taken at the meeting—
(i) to the Court; and
(ii) to such other persons as may be prescribed by the insolvency regulations for the purposes of this section; and
(b) shall lodge a copy of the report with the Registrar for registration.
(7) An administrator who, without reasonable excuse, fails to comply with a requirement of this section commits an offence and on conviction is liable to a fine not exceeding five hundred thousand shillings.
(8) If, after being convicted of an offence under subsection (7), an administrator continues to comply with the relevant requirement, the administrator commits a further offence on each day on which the failure continues and on conviction is liable to a fine not exceeding fifty thousand shillings for each such offence.
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- Section 572 - Consequences of failure to obtain approval of administrator's proposals
(1) This section applies if an administrator reports to the Court that—
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(1) The administrator of a company shall convene a creditors' meeting if—
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- Section 574 - Creditors' meeting may establish creditors' committee
(1) A creditors' meeting may establish a creditors' committee.
(2) A creditors' committee shall perform the functions conferred on it by or under this Act.
(3) A creditors' committee may require the...
- Section 575 - Creditors' meeting can be conducted by correspondence
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- Section 576 - Specific functions of administrator
The administrator of a company has the functions and powers specified in the Fourth Schedule.
- Section 577 - Power of administrator to remove and appoint directors of company
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(a) may remove a director of the company from office; and
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- Section 578 - Power of administrator to convene meetings of members and creditors of company
The administrator of a company may convene a meeting of members or creditors of the company.
- Section 579 - Power of administrator to seek directions from the Court
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- Section 580 - General powers of administrator
(1) The administrator of a company may take any action that contributes to, or is likely to contribute to, the effective and efficient management of the affairs and property of the company.
(2) A...
- Section 581 - Company under administration not to perform management functions without administrator's consent
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(2) For the purpose...
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- Section 584 - Duty of administrator to assume control of property of company
Immediately on being appointed as administrator of a company, the administrator shall assume control of all the property to which the administrator believes the company is entitled.
- Section 585 - Duty of administrator to manage affairs and property of company
(1) Subject to subsection (2), the administrator of a company shall manage its affairs and property in accordance with—
(a) any proposals approved under section 570;
(b) any revision of those...
- Section 586 - Administrator is agent of company
In performing and exercising the administrator's functions and powers under this Part, the administrator of a company acts as its agent.
- Section 587 - Power of administrator to dispose of, and deal with, charged property: floating charge
(1) The administrator of a company may dispose of, or take action relating to, property that is subject to a floating charge as if it were not subject to the charge.
(2) If property is disposed of in...
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(1) The Court may examine the conduct of a person who—
(a) is or purports to be the administrator of a company; or
(b) has been, or has purported to be, the administrator of a company.
(2) An...
- Section 593 - Automatic end of administration
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(1) Despite section 593—
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(b) an administrator's term of...
- Section 595 - Court may terminate administration on application of administrator
(1) The administrator of a company shall make an application to the Court for an order terminating the administrator's appointment—
(a) on forming the belief that—
(i) the objective of the...
- Section 596 - Termination of administration when objective achieved
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(2) An application under...
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- Section 599 - Procedure for moving from administration to creditors' voluntary liquidation
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- Section 600 - Moving from administration to dissolution
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- Section 601 - Discharge of administration order if administrator's appointment is terminated
The Court shall discharge an administration order if—
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- Section 603 - Resignation of administrator
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- Section 604 - Court may remove administrator from office
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(b) resigns;
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- Section 608 - Power of holder of floating charge to appoint replacement administrator appointed under section 534
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(a) with...
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(2) In this section—
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(2) If a...
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- Section 621 - Majority decision of directors
A reference in this Part to act done or omitted to be done by the directors of a company includes the same act done or omitted to be done by a majority of the directors of a company.