Section 594 of Insolvency Act CAP 53: Circumstances in which administrator's term of office can be extended
(1) Despite section 593—
(a) on the application of an administrator, the Court may by order extend the administrator's term of office for a specified period; and
(b) an administrator's term of office may be extended by consent for a specified period not exceeding six months.
(2) An order of the Court made under subsection (1)(a)—
(a) may be made in respect of an administrator whose term of office has already been extended; but
(b) may not be made after the administrator's term of office has ended.
(3) As soon as practicable after an order is made under (1)(a), the administrator shall lodge a copy of the order with the Registrar for registration.
(4) In subsection (1)(b), "consent" means—
(a) the consent of each secured creditor of the company; and
(b) if the company has unsecured debts, the consents of creditors of the company holding debts amounting to more than fifty percent of the company's unsecured debts (disregarding debts held by any creditor who does not respond to an invitation to give or withhold consent).
(5) However, if the administrator has made a statement under section 569(1)(b), "consent" means—
(a) the consent of each secured creditor of the company; or
(b) if the administrator believes that a distribution may be made to preferential creditors—
(i) the consent of each secured creditor of the company; and
(ii) the consents of preferential creditors of the company holding debts amounting to more than fifty percent of the preferential debts of the company (disregarding debts held by any creditor who does not respond to an invitation to give or withhold consent).
(6) Consent for the purposes of subsection (1)(b) may be—
(a) written; or
(b) signified orally at a creditors' meeting.
(7) An administrator's term of office—
(a) may be extended by consent only once;
(b) may not be extended by consent after it has been extended by an order of the Court; and (c) may not be extended by consent after it has ended.
(8) As soon as practicable after an administrator's term of office is extended by consent, the administrator shall—
(a) lodge a notice of the extension with the Court; and
(b) lodge a copy of the notice with the Registrar for registration.
(9) An administrator who, without reasonable excuse, fails to comply with subsection (3) or (8) commits an offence and on conviction is liable to a fine not exceeding two hundred thousand shillings for each such offence.
(10) If, after being convicted of an offence under subsection (9), an administrator continues to fail to lodge the required copy, the administrator commits a further offence on each day on which the failure continues and on conviction is liable to a fine not exceeding twenty thousand shillings for each such offence.
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