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Section 599 of Insolvency Act CAP 53: Procedure for moving from administration to creditors' voluntary liquidation

    

(1) This section applies if the administrator of a company believes—
(a) that the total amount that each secured creditor of the company is likely to receive has been paid to the creditor or set aside for the creditor; and
(b) if there are any unsecured creditors, that a distribution will be made to them.
(2) The administrator may lodge with the Registrar for registration a notice that this section applies.
(3) On receipt of a notice under subsection (2), the Registrar shall register it.
(4) As soon as practicable lodging a notice under subsection (2), the administrator shall—
(a) lodge a copy of the notice with the Court; and
(b) send a copy of the notice to each creditor of whose claim, and of whose address, the administrator is aware.
(5) On the registration of a notice in accordance with subsection (3)— (a) the administrator's appointment in respect of the company ends; and
(b) the company is required to be liquidated as if a resolution for voluntary liquidation under section 393 were passed on the day on which the notice is registered.
(6) The liquidator for the purposes of the liquidation is—
(a) a person nominated by the creditors of the company in the prescribed manner and within the prescribed period; or
(b) if no person is nominated under paragraph (a), the administrator.
(7) In the application of Part VI to a liquidation in accordance with this section— (a) section 393 does not apply;
(b) section 394 applies as if the reference to the time of the passing of the resolution for voluntary liquidation were a reference to the beginning of the date of registration of the notice under subsection (2);
(c) section 397 does not apply;
(d) sections 405,406 and 407 do not apply;
(e) section 430 applies as if the reference to the time of the passing of the resolution for voluntary liquidation were a reference to the beginning of the date of registration of the notice under subsection (2); and
(f) any creditors' committee that is in existence immediately before the company ceased to be under administration continues in existence after that time as if appointed as a liquidation committee under section 409.

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

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