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Section 614 of Insolvency Act CAP 53: Discharge from liability on administrator's vacating office

    

(1) If the appointment of a person as the administrator of a company ends (for whatever reason), the administrator is discharged from liability in respect of all acts done or omitted to be done as administrator.
(2) The discharge provided by subsection (1) takes effect—
(a) in the case of an administrator who dies, on the lodging with the Court of notice of the administrator' s death;
(b) in the case of an administrator appointed under section 534 or 541, at a time fixed by resolution of the creditors' committee or, if there is no creditors' committee, by resolution of the creditors; or
(c) in any other case, at a time specified by the Court.
(3) For the purpose of the application of subsection (2)(b), if the administrator has made a statement that the company has insufficient property to enable a distribution to be made to unsecured creditors otherwise than in accordance with section 474(2)(a), a resolution is taken to have been passed if (and only if) passed with the approval of—
(a) each secured creditor of the company; or
(b) if the administrator has made a distribution to preferential creditors or believes that a distribution may be made to preferential creditors—
(i) each secured creditor of the company; and
(ii) preferential creditors whose debts amount to more than fifty percent of the preferential debts of the company, disregarding debts of any creditor who does not respond to an invitation to give or withhold approval.
(4) A discharge—
(a) applies to liability accrued before the discharge takes effect; and
(b) does not prevent the exercise of the Court's powers under section 592.

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

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