Section 596 of Insolvency Act CAP 53: Termination of administration when objective achieved
(1) This section applies to an administrator of a company who is appointed under section 534 or 541.
(2) If the administrator believes that the purpose of administration has been sufficiently achieved in relation to the company, the administrator may lodge—
(a) with the Court; and
(b) with the Registrar, a notice containing the information prescribed by the insolvency regulations for the purposes of this section.
(3) The administrator's appointment ends when the requirements of subsection (2) are satisfied.
(4) Within seven days after lodging a notice with the Court under subsection (2), the administrator shall send a copy of it to every creditor of the company of whose claim and address the administrator is aware.
(5) The insolvency regulations may provide that the administrator is taken to have complied with subsection (4) if, before the end of the period specified in that subsection, the administrator publishes in such publications, and in such locations, as may be specified in those regulations a notice undertaking to provide a copy of the notice under subsection (2) to any creditor of the company who applies in writing to a specified address.
(6) An administrator who, without reasonable excuse, fails to comply with subsection (4) commits an offence and on conviction is liable to a fine not exceeding five hundred thousand shillings.
(7) If, after being convicted of an offence under subsection (6), an administrator continues to fail 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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