Section 637 of Insolvency Act CAP 53: Application of Part 2

A company is eligible to obtain a moratorium if it— (a) complies with such requirements (if any) as may be prescribed by the insolvency regulations; (b) is not declared to be an ineligible company...

The following companies are ineligible companies for the purposes of section 638: (a) a company that holds a licence granted under section 5 of the Banking Act (Cap. 488) authorising it to carry on a...

(1) The following companies are also ineligible companies for the purpose of section 638— (a) a company that is under administration; (b) a company that is in liquidation; (c) a company in respect...

(1) A company is also an ineligible company for the purposes of section 638 if, on the lodgement date, it is a project company of a project that is a public-private partnership project and includes...

(1) Deleted by Act No. 1 of 2021 (2) If the directors of an eligible company wish to obtain a moratorium, they shall— (a) prepare— (i) a document setting out why a moratorium is desirable, which may...

(1) To obtain a moratorium, the directors of a company shall lodge with the Court— (a) the documents referred to in section 643(2)(a); (b) a statement to the effect that the company is eligible for...

(1) A moratorium takes effect when the documents specified in section 644(1) are lodged with the Court. (2) A moratorium ends after thirty days from and including the day on which the moratorium...

(1) When a moratorium takes effect in respect of a company, the directors of the company shall immediately give notice of that fact to the monitor. (2) If subsection (1) is not complied with, each of...

(1) As soon as practicable after being notified that a moratorium has taken effect, the monitor shall— (a) publish— (i) once in the Gazette; (ii) once in at least two newspapers circulating in the...

(1) Within fourteen days after a moratorium has come to an end, the monitor shall— (a) publish— (i) once in the Gazette; (ii) once in at least two newspapers circulating in area in which the company...

(1) While a moratorium has effect in respect of a company— (a) an application for liquidation of the company may not be made; (b) a meeting of the company may be convened or requisitioned— (i) only...

Security given by a company at a time when a moratorium has effect in relation to the company can be enforced only if, at that time, reasonable grounds existed for believing that the security would...

(1) Sections 653 to 657 apply to a company in respect of which a moratorium currently has effect. (2) The fact that a company enters into a transaction in contravention of a provision of sections 653...

(1) A company in respect of which a moratorium has effect shall ensure that every invoice, order for goods or services, business letter or order form (whether in hard copy, electronic or any other...

(1) A company in respect of which a moratorium has effect may not obtain credit exceeding twentyfive thousand shillings from a person who has not been informed that a moratorium has effect in respect...

(1) Subject to subsection (2), a company in respect of which a moratorium has effect may dispose of any of its property only if— (a) there are reasonable grounds for believing that the disposal will...

(1) Subject to subsection (2), a company in respect of which a moratorium has effect may make a payment in respect of a debt or other liability of the company that was in existence before the...

(1) This section applies to— (a) property of the company that is subject to a security; and (b) goods that are in the possession of the company under a credit purchase transaction. (2) A company...

(1) During the moratorium, the monitor is responsible for monitoring the company's activities in order to ascertain whether the company is likely to have sufficient funds available to it during the...

(1) Except with the approval of the Court, a provisional supervisor may withdraw consent to monitor a moratorium only if, during the moratorium— (a) the monitor concludes that the company will not...

(1) Any creditor, director or member of the company, or any other person affected by a moratorium, who is dissatisfied with an act, omission or decision of the monitor during the moratorium may apply...

(1) If there are reasonable grounds for believing that— (a) as a result of any act, omission or decision of the monitor during the moratorium, the company has sustained loss; and (b) the company...

(1) An application may be made to the Court for an order under subsection (2)— (a) if the monitor has failed to comply with any duty imposed on that monitor under this Part or has died, by the...

On the application of the directors, the Court may extend a moratorium for a period of at least thirty days if the Court believes that the extension is desirable in order to achieve the aims for which...

(1) The conditions that may be imposed when a moratorium is extended or further extended include a requirement that the monitor be replaced as such by another authorised insolvency...

(1) If the Court extends, or further extends, the moratorium, the monitor shall within seven days of the order, lodge a copy of the order with the Registrar for registration. (2) Deleted by Act No. 1...

(1) This section applies to and in relation to acts or omissions of the directors of a company during a moratorium. (2) A creditor or member of the company may apply to the Court for an order under...

(1) This section applies to a company in respect of which a moratorium has or had effect. (2) A person who, at any time during the twelve months immediately preceding the date on which the moratorium...

In this Part— "deliver", in relation to documents or other property, includes surrender and transfer; "relevant office-holder" means— (a) in relation to a company under administration, the...

(1) This section applies to a company that is under administration or in liquidation. (2) If a person has control over money, documents or other property to which the company appears to be entitled,...

(1) In this section, “relevant office holder", in relation to a company, also includes the Official Receiver even if not the liquidator. (2) This section applies to the following persons— (a) those...

(1) In this section, "relevant office holder", in relation to a company, includes the Official Receiver even if not the liquidator. (2) On the application of the relevant office-holder, the Court may...

(1) If, after considering the evidence obtained under section 680 or this section, it appears to the Court that a person has control over property of the company, the Court may, on the application of...

(1) This section applies to a company that is under administration or in liquidation. (2) In this section, "relevant time" has the meaning given by section 684. (3) On forming the reasonable belief...

(1) In this section, "relevant time" has the meaning given by section 684. (2) If of the view that a company has at a relevant time given a preference to a person, the relevant office-holder may...

(1) Subject to subsection (3), the time at which a company enters into a transaction at an undervalue is a relevant time if the transaction is entered into at a time— (a) during the two years...

(1) An order under section 682 or 683 with respect to a transaction or preference entered into or given by a company may, subject to subsection ( 2)— (a) require property transferred as part of the...

(1) This section applies to a transaction to which a company is, or has been, a party to a transaction for, or involving, the provision of credit to the company. (2) The relevant office-holder may...

(1) Except as otherwise provided by this section, a floating charge on the company's undertaking or property created at a relevant time is invalid except to the extent of the aggregate of— (a) an...

(1) This section applies to a company that is under administration or in liquidation. (2) A lien or other right to retain possession of any of the documents of the company is unenforceable to the...

(1) This section applies to a company— (a) that is under administration or in liquidation; or (b) in respect of which a moratorium or voluntary arrangement under Part IX has effect. (2) In this...

(1) In this section, "administrative receiver", in relation to a company, means— (a) a receiver or manager of the whole (or substantially the whole) of the company's property appointed by or on...

(1) If a company has failed to comply with a requirement under this Act— (a) to lodge a document with the Registrar for registration; or (b) to give notice to the Registrar of any matter, the...

(1) The Official Receiver, or a person who claims to have been, to be or to be about to be adversely affected— (a) by the past or continuing conduct of, or by a threat to engage in conduct made by, a...

(1) If a provision of this Act provides that an officer of a company who is in default commits an offence, the officer commits the offence only if the officer— (a) authorises or...

(1) If— (a) a body corporate commits an offence to which this section applies; and (b) the offence is proved to have been committed with the consent or connivance of, or to be attributable to...

(1) In any proceedings (whether under this Act or any other written law)— (a) a statement of the financial position or affairs of a bankrupt, company or other person prepared for the purpose of any...

(1) A proceeding under this Act may not be invalidated or set aside for a defect in a step that is required to be taken as part of, or in connection with, the proceeding, unless a person is...

(1) The Rules Committee, with the addition of the Official Receiver, may make rules providing for either or both of the following— (a) the procedure of the Court under this Act; (b) appeals to the...

The Court may review, rescind, or vary any order of the Court under this Act.