- Section 655 of Insolvency Act CAP 53: Restrictions on disposal of property and making payments by company
(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 benefit the company; and (b) the disposal is approved by the monitor.
(2) Subsection (1) does not...
- Section 656 of Insolvency Act CAP 53: Restriction on company paying debts and other liabilities
(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 beginning of the moratorium only if—
(a) there are reasonable grounds for believing that the payment will...
- Section 657 of Insolvency Act CAP 53: Circumstances in which company may dispose of property and goods that are subject to a security or held under credit purchase transaction
(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 may transfer property to that is subject to a security as if it were not subject to the security, but...
- Section 658 of Insolvency Act CAP 53: Monitor's to monitor activities of company during moratorium
(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 remainder of the moratorium to enable it to continue to carry on its business.
(2) On being requested...
- Section 659 of Insolvency Act CAP 53: Withdrawal of monitor's consent to act
(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 have sufficient funds available to it during the remainder of the moratorium to enable it to continue...
- Section 660 of Insolvency Act CAP 53: Creditors and others may challenge monitor's conduct during moratorium by application made to the Court
(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 to the Court for an order under subsection (3).
(2) An application may be made during the...
- Section 661 of Insolvency Act CAP 53: Creditor may pursue claim against monitor for loss
(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 does not intend to pursue any claim it may have against that monitor, any creditor of the company may...
- Section 662 of Insolvency Act CAP 53: Replacement of monitor by the Court
(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 directors of the company; or
(b) if it is impracticable or inappropriate for that monitor to continue as...
- Section 669 of Insolvency Act CAP 53: Extension of moratorium
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 the moratorium was initially obtained under section 643.
- Section 670 of Insolvency Act CAP 53: Conditions for extension of moratorium
(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 practitioner.
(2) An authorised insolvency practitioner may be appointed as a replacement monitor as provided by...
- Section 671 of Insolvency Act CAP 53: Decisions to extend or further extend moratorium
(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 of 2021.
(3) A monitor who, without reasonable excuse, fails to comply with a requirement of this...
- Section 674 of Insolvency Act CAP 53: Member or creditor of company may challenge actions of directors
(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 this section on the ground—
(a) that the company's affairs and property are being or have been...
- Section 675 of Insolvency Act CAP 53: Offences under this Division
(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 took effect was an officer of the company—
(a) did an act specified in subsection (4); or
(b) was...
- Section 677 of Insolvency Act CAP 53: Interpretation: Part X
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 administrator;
(b) in relation to a company in liquidation, the liquidator or the provisional...
- Section 678 of Insolvency Act CAP 53: Realising property of company that is in liquidation or under administration
(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, the Court may require that person immediately, or within such period as the Court may direct, to pay...
- Section 679 of Insolvency Act CAP 53: Duty of certain persons to co-operate with relevant office-holder
(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 who are or have at any time been officers of the company;
(b) those who have taken part in the...
- Section 680 of Insolvency Act CAP 53: Power of the Court to conduct inquiry into insolvent company's dealings, etc., on application made by relevant office-holder
(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 summon to appear before it— (a) any officer of the company;
(b) any person who is known or...
- Section 681 of Insolvency Act CAP 53: Court's enforcement powers under section 680
(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 the relevant office-holder, order the person to deliver the whole or any part of the property to...
- Section 682 of Insolvency Act CAP 53: Power of the Court to set aside transaction that is under value
(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 the the company has, at a relevant time, entered into a transaction with a person at an undervalue,...
- Section 683 of Insolvency Act CAP 53: Power of the Court to void certain preferences
(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 apply to the Court for an order under subsection (3).
(3) If, on the hearing of an application made...
- Section 684 of Insolvency Act CAP 53: What "relevant time" means in sections 682 and 683
(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 immediately preceding the onset of insolvency;
(b) between the making of an administration application in...
- Section 685 of Insolvency Act CAP 53: Orders under sections 682 and 683: ancillary provisions
(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 transaction, or in connection with the giving of the preference, to be vested in the...
- Section 686 of Insolvency Act CAP 53: Power of the Court to set aside certain extortionate credit transactions
(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 apply to the Court for an order under subsection (3) if of the view that such a transaction— (a) is or...
- Section 687 of Insolvency Act CAP 53: Circumstances in which floating charge on company's undertaking or property to be invalid
(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 amount equal to the value of so much of the consideration for the creation of the charge as consists of...
- Section 688 of Insolvency Act CAP 53: Lien in respect of company's documents unenforceable if it would deny their possession to relevant office-holder
(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 extent that its enforcement would deny possession of any of the documents to the relevant...
- Section 689 of Insolvency Act CAP 53: Supply of utility services to companies in liquidation or under administration
(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 section, "relevant officer-holder", in relation to a company in respect of which a moratorium or...
- Section 690 of Insolvency Act CAP 53: Appointment of administrative receiver in respect of company prohibited
(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 behalf of the holders of any debentures of the company secured by a charge which, as created, was a...
- Section 691 of Insolvency Act CAP 53: Enforcement of company's obligations to lodge documents with, or give notice to, the Registrar of Companies
(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 Registrar, or any member or creditor of the company, may give notice to the company requiring it to comply...
- Section 692 of Insolvency Act CAP 53: Power of the Court to grant injunctions in certain cases
(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 person referred to in subsection (2); or
(b) by the past or continuing refusal or failure, or by a...
- Section 693 of Insolvency Act CAP 53: Liability of officer who are in default
(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 permits;
(b) participates in; or
(c) fails to take all reasonable steps to prevent, the contravention of the act or...