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Browse Acts ↓(1) A creditors' meeting is not valid unless at least the following persons attend— (a) the bankruptcy trustee or a person who represents the bankruptcy trustee; (b) a creditor or a person who represents a creditor. (2) The meeting lapses if those persons do not attend, in which case the bankruptcy…
(1) Any of the following persons may represent a creditor at a creditors' meeting— (a) an advocate; (b) a certified public accountant; (c) a person who keeps the creditor's or bankrupt's accounting records; (d) in the case of a creditor, a person who is the creditor's authorised agent under a power…
(1) At a creditors' meeting— (a) an ordinary resolution is passed if a majority in number and value of the creditors, or their proxies, who attend and who vote on the resolution vote in favour of it; and (b) a special resolution is passed if three-quarters in number and value of the creditors or the…
(1) A creditor who is entitled to vote at a creditors' meeting may vote on a resolution to be put to the meeting— (a) by postal vote; or (b) by electronic vote, if the voting paper for the resolution allows it, in accordance with the procedure specified in the voting paper. (2) A postal or electroni…
Creditors of the bankrupt who are entitled to vote, or their representatives, may vote at a creditors' meeting, but this rule is subject to sections 96 to 98.
A debt that is secured only entitles the creditor to vote at a creditors' meeting if the creditor has— (a) surrendered the charge; (b) valued the charge; or (c) realised the charge.
(1) A debt on, or secured by, a current bill of exchange or promissory note entitles the creditor to vote only if the creditor is willing to take the following steps— (a) to treat a qualifying liability as a charge in the creditor's hands; (b) to estimate the value of the charge; (c) to deduct the v…
(1) A person is not entitled to vote in favour of a resolution that would, if passed, directly or indirectly enable that person or any of the following persons to receive remuneration from the bankrupt's estate except as a creditor sharing rateably with the other creditors. Those persons are— (a) th…
The bankruptcy of a partner of a firm who is indebted to a creditor jointly with one or more of the other partners entitles the creditor to prove the debt for the purpose of voting at any creditors' meeting, and to vote.
(1) A creditors' meeting may pass an ordinary resolution— (a) appointing an expert to assist the bankruptcy trustee in the administration of the bankrupt's estate; and (b) providing for the expert's remuneration out of that estate. (2) A creditors' meeting may, by ordinary resolution, appoint a comm…
A creditor who has lodged a creditor's claim, or an advocate or a certified public accountant who is acting for the creditor, is entitled at any reasonable time to inspect or take copies of— (a) the bankrupt's accounting records; (b) the bankrupt's answers to questions under section 88; (c) the stat…
(1) A general meeting of the creditors of a bankrupt may establish a creditors' committee to perform the functions conferred on it by or under this Part. (2) A general meeting of the creditors of a bankrupt may not establish such a committee, or impose functions on such a committee, while the Offici…
(1) A creditors' committee may not perform its functions if at any time the Official Receiver is bankruptcy trustee in respect of the bankrupt's estate. (2) If, in the case of a bankruptcy, no creditors' committee exists and the bankruptcy trustee in respect of the bankrupt's estate is a person othe…
(1) Until the bankrupt is discharged— (a) all property (whether in or outside Kenya) that the bankrupt acquires or that passes to the bankrupt vests in the bankruptcy trustee without that trustee having to intervene or take any other step in relation to the property, and any rights of the bankrupt i…
If the bankruptcy trustee is replaced, the property and powers vested in the former bankruptcy trustee under this Act vest in the replacement bankruptcy trustee.
Property held by the bankrupt in trust for another person vests in the bankruptcy trustee, who shall assume control of the property and deal with it for the benefit of the beneficiaries of the trust.
(1) If a bankruptcy trustee considers it necessary to do so, the bankruptcy trustee may apply to the Court for an order under subsection (2). (2) On the hearing of an application made under subsection (1), the Court may order that any money due to the bankrupt, or any money to become due or payable…
The bankruptcy trustee shall apply the following payments in accordance with the Second Schedule (Priority of payments to preferential creditors— (a) any amount paid by the bankrupt under section 150; and (b) any amount paid to the bankruptcy trustee under an order made under section 107.
(1) This section applies if a bankruptcy order has been made in respect of a debtor but, before the order was made, a creditor has— (a) issued execution against the debtor's property; or (b) attached a debt payable by the debtor. (2) If this section applies, the creditor may retain the benefit of th…
(1) This section applies if a judicial enforcement officer who has taken the property of a debtor in execution is served with notice of the debtor's bankruptcy— (a) before the property is sold; or (b) before the execution is completed by the receipt or recovery of the full amount derived from the ex…
(1) This section applies if, under execution of a judgment for an amount exceeding ten thousand shillings, the judicial enforcement officer— (a) sells property of the debtor; or (b) is paid money in order to avoid a sale. (2) The judicial enforcement officer is entitled to— (a) deduct the costs of t…
On the sale by the judicial enforcement officer of a debtor's property on which execution has been levied, the purchaser, if acting in good faith, acquires a good title to the property as against the bankruptcy trustee.
(1) An execution creditor may make an application to the Court for an order setting aside the rights of the bankruptcy trustee under section 110 or 111. (2) On the hearing of an application made under subsection (1), the Court may make an order setting aside those rights in favour of the execution c…
(1) This section applies to a transaction between a person and the bankrupt in relation to property that the bankrupt has acquired, or that has passed to the bankrupt, after the bankruptcy has commenced. (2) The transaction is valid as against the bankruptcy trustee if— (a) the person concerned deal…
If a bankrupt acquires property, or property passes to a bankrupt, after the bankruptcy has commenced, an execution or attachment against the property is valid as against the bankruptcy trustee if it— (a) is made in good faith; (b) is made in respect of a debt or liability incurred by the bankrupt a…
For the purposes of sections 109 and 115— (a) an execution against goods is completed by seizure and sale; (b) an attachment of a debt is completed by receipt of the debt; and (c) an execution against land is completed by sale or, in the case of an equitable interest, by the appointment of a receive…
If the bankruptcy trustee's interest in property is acquired by or passes to a bankrupt after bankruptcy has commenced— (a) the bankruptcy trustee's interest in the property ends; and (b) that interest passes in the manner, and to the extent necessary, to give effect to a transaction, execution, or…
(1) The bankruptcy trustee may disclaim onerous property, subject to section 121. (2) Subsection (1) applies even if the bankruptcy trustee has taken possession of the property, tried to sell it, or otherwise exercised rights of ownership in relation to it. (3) Within fourteen days after the disclai…
A disclaimer by the bankruptcy trustee— (a) terminates, on and from the date of the disclaimer, the rights, interests, and liabilities of the bankruptcy trustee and the bankrupt in relation to the property disclaimed; and (b) does not affect the rights, interests, or liabilities of any other person,…
(1) A person who sustains loss or damage as a result of disclaimer by the bankruptcy trustee may— (a) claim as a creditor in the bankruptcy for the amount of the loss or damage, taking account of the effect of an order made by the Court under paragraph (b); or (b) apply to the Court for an order tha…