Section 591 of Insolvency Act CAP 53: Administrator's conduct of administration can be challenged

    

(1) A creditor or member of a company under administration may apply to the Court claiming—
(a) that the administrator is acting or has acted so as to detrimentally affect the interests of the applicant (whether alone or in common with some or all other members or creditors of the company); or
(b) that the administrator proposes to act in a way that would detrimentally affect the interests of the applicant (whether alone or in common with some or all other members or creditors).
(2) A creditor or member of a company under administration may apply to the Court on the ground that the administrator is not performing the administrator's functions as quickly or as efficiently as is reasonably practicable.
(3) On the hearing of an application made under subsection (1) or (2), the Court may— (a) make an order granting relief;
(b) make an order dismissing the application;
(c) adjourn the hearing conditionally or unconditionally;
(d) make an interim order; or
(e) make such other order as it considers appropriate.
(4) In particular, an order under this section may do all or any of the following—
(a) regulate the administrator’s performance or exercise of the administrator's functions or powers;
(b) require the administrator to do or not do a specified act;
(c) require a creditors' meeting to be held for a specified purpose;
(d) end the appointment of an administrator;
(e) make provisions of a consequential nature.
(5) An order may be made on a claim made under subsection (1) whether or not the action complained of—
(a) is within the administrator's powers under this Part; or
(b) was taken in reliance on an order under section 588 or 589.
(6) An order may not be made under this section if it would impede or prevent the implementation of— (a) a voluntary arrangement approved under Part IX;
(b) a compromise or arrangement sanctioned under the Companies Act (Cap. 486);
(c) a merger of a kind prescribed by the insolvency regulations made for the purposes of this section; or
(d) proposals or a revision approved under section 570 or 571 more than thirty days before the day on which the application for the order under this section is made.


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

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