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Browse Acts ↓(1) If, in the course of liquidating a company, the Court concludes that a person who was at the relevant time a past or present officer, or a member, of the company may have committed an offence in relation to the company for which the person is criminally liable, the Court may (either on the appli…
(1) For the purpose of an investigation by the Attorney-General under 510(4), a person has the same obligation to produce documents or give information, or otherwise assist the Attorney-General, as the person would have in relation to an inspector appointed under the Companies Act (Cap. 486). (2) An…
For the purposes of this Part, "unregistered company" includes any association and any company, other than a company registered under the Companies Act (Cap. 486).
(1) Subject to the provisions of this Part— (a) any unregistered company may be liquidated under Pat VI; and (b) the provisions of that Part relating to liquidation apply to an unregistered company. (2) An unregistered company cannot be liquidated under this Part voluntarily.
(1) The circumstances in which an unregistered company can be liquidated are as follows— (a) if the company is dissolved, or has ceased to carry on business, or is carrying on business only for the purpose of liquidating its affairs; (b) if the company is unable to pay its debts; (c) if the Court is…
(1) If a company incorporated outside Kenya that has been carrying oh business in Kenya ceases to carry on business there, it can be liquidated as an unregistered company under this Act. (2) Subsection (1) has effect even if the company has been dissolved or has otherwise ceased to exist as a compan…
(1) If an unregistered company is in liquidation, each person is a contributory who is liable— (a) to pay or contribute to the payment of any debt or liability of the company; (b) to pay or contribute to the payment of any amount for the adjustment of the rights of members among themselves; or (c) t…
The provisions of this Part with respect to staying or restraining legal proceedings against a company after the making of an application for liquidation and before the making of a liquidation order extend, if the application to stay or restrain is made by a creditor, to legal proceedings against a…
If an order has been made for liquidating an unregistered company, no legal proceedings may be begun or continued against a contributory of the company in respect of any debt of the company, except by approval of the Court, and subject to such terms as the Court may impose.
(1) The provisions of this Part with respect to unregistered companies are in addition to those of Part VI with respect to the liquidation of companies by the Court. (2) The Court or liquidator may exercise any powers or do any act in the case of unregistered companies that might be exercised or don…
In this Part— "administrator", in relation to a company, means a person appointed under this Part to manage the company's affairs and property, and, if the context requires, includes a former administrator; "creditors' meeting" means a meeting of creditors of a company under administration that is c…
For the purposes of this Act— (a) a company is "under administration" while the appointment of an administrator of the company continues to have effect; (b) a company "enters administration" when the appointment of an administrator takes effect; (c) a company ceases to be under administration when t…
(1) The objectives of the administration of a company are the following— (a) to maintain the company as a going concern; (b) to achieve a better outcome for the company's creditors as a whole than would likely to be the case if the company were liquidated (without first being under administration);…
A person may be appointed as administrator of a company— (a) by administration order of the Court in accordance with Division 3; (b) by the holder of a floating charge under section 534; or (c) by the company or its directors under section 541.
The administrator of a company shall perform the administrator's functions as quickly and efficiently as is reasonably practicable.
An administrator is an officer of the Court, whether or appointed by the Court or not.
A person may be appointed as administrator of a company only if the person is an authorised insolvency practitioner.
(1) Except as provided by subsection (2), a person may not be appointed as administrator of a company that is already under administration. (2) Subsection (1) is subject to sections 606 to 613 and sections 616 to 619.
(1) A person may not be appointed as administrator of a company that is in liquidation because of— (a) a resolution for voluntary liquidation; or (b) a liquidation order. (2) Subsection (1)(a) is subject to section 557 (power of liquidator to make an application for administration). (3) Subsection (…
(1) A person may not be appointed under this Part as administrator of— (a) a company that is a bank; or (b) a company that enters into contracts of insurance or carries on insurance business. (2) Subsection (1) is subject to section 35A of the Banking Act (Cap. 488).
An administration order is an order appointing a person as the administrator of a company and providing for the administration of the company by that person.
The Court may make an administration order in relation to a company only if satisfied— (a) that the company is or is likely to become unable to pay its debts; and (b) that the administration order is reasonably likely to achieve an objective of administration.
(1) An application to the Court for an administration order in respect of a company may be made only by the following persons— (a) the company; (b) the directors of the company; (c) one or more creditors of the company; (d) a combination of persons specified in paragraphs (a) to (c); (e) any other p…
(1) On hearing an application for an administration order in respect of a company, the Court may— (a) make the administration order sought; (b) dismiss the application; (c) adjourn the hearing conditionally or unconditionally; (d) make an interim order; (e) treat the application as a liquidation app…
(1) The holder of a qualifying floating charge in respect of a company's property may appoint an administrator of the company. (2) For the purposes of subsection (1), a floating charge is a qualifying floating charge if it is created by a document that— (a) states that this section applies to the fl…
(1) A person may not appoint an administrator under section 534 unless the person has given at least three days' notice to the holder of any prior floating charge that satisfies subsection (2) of that section. (2) For the purposes of subsection (1), the priority of a floating charge shall be determi…
A person may not be appointed as administrator under section 534 if the floating charge on which the appointment depends is unenforceable.
(1) A person who appoints an administrator of a company under section 534 shall lodge with the Court — (a) a notice of appointment that complies with subsections (2); and (b) such other documents as may be prescribed by the insolvency regulations for the purposes of this section. (2) A notice of app…
The appointment of an administrator under section 534 takes effect when the requirements of section 537 are satisfied.
(1) As soon as is reasonably practicable after the requirements of section 537 are satisfied, the person who appointed the administrator under section 534 shall notify the administrator, and such other persons as may be prescribed by the insolvency regulations for the purposes of this section, that…