- Section 481 of Insolvency Act CAP 53: Creditor not entitled to retain benefit of execution or attachment against liquidator unless creditor completes execution or attachment before commencement of liquidation
(1) If—
(a) a creditor—
(i) has issued execution against the goods or land of a company; or
(ii) has attached any debt due to it; and
(b) the company is subsequently liquidated, the creditor is not entitled to retain the benefit of the execution or attachment against the liquidator unless the...
- Section 482 of Insolvency Act CAP 53: Duties of judicial enforcement officers charged with execution of writs and other processes involving companies in liquidation
(1) This section applies if—
(a) a company's goods are taken in execution; and
(b) before their sale or the completion of the execution (whether by the receipt or recovery of the full amount of the levy), notice is served on the judicial enforcement officer charged with execution of the writ or...
- Section 483 of Insolvency Act CAP 53: Power of the Court to rescind contracts entered into by company in liquidation
(1) A person who is, as against the liquidator, entitled to the benefit or subject to the burden of a contract made with the company, may make an application for an order under subsection (2).
(2) On the hearing of an application made under subsection (1), the Court may make an order rescinding the...
- Section 484 of Insolvency Act CAP 53: Power of liquidator to transfer assets of company to its employees
(1) On the liquidation of a company (whether by the Court or voluntarily), the liquidator may, in accordance with this section, make any payment that the company has, before the commencement of the liquidation, decided to make under the Companies Act (Cap. 486) to employees or former employees on...
- Section 485 of Insolvency Act CAP 53: Company in liquidation required to state that it is in liquidation in all invoices, letters and other communications
(1) A company that is in liquidation shall ensure that the following documents state that the company is in liquidation:
(a) every invoice, order for goods or services, business letter or order form (whether in hard copy, electronic or any other form) issued by or on behalf of the company, or a...
- Section 486 of Insolvency Act CAP 53: Interest on debts to be paid if surplus permits
(1) In a company liquidation, interest is payable in accordance with this section on any debt proved in the liquidation, including so much of any such debt as represents interest on the remainder.
(2) The liquidator shall, before applying any surplus remaining after the payment of the debts proved...
- Section 487 of Insolvency Act CAP 53: Certain documents relating to company in liquidation to be exempt from stamp duty
(1) If a company is in liquidation, the following documents are exempt from stamp duty—
(a) every transfer relating solely to freehold or leasehold property, or to any interest in, any real or movable property, that forms part of the company's assets and that, after the execution of the transfer,...
- Section 488 of Insolvency Act CAP 53: Records of company in liquidation to be evidence
When a company is in liquidation, all records of the company and of the liquidator are (as between the contributories of the company) evidence of the truth of all matters purporting to be recorded in them, until the contrary is proved.
- Section 489 of Insolvency Act CAP 53: Liquidator to lodge periodic statements with Registrar of Companies with respect to current position of liquidation
(1) If the liquidation of a company is not completed within twelve months after its commencement, the liquidator shall, at such intervals as are prescribed by the insolvency regulations and until the liquidation is completed, lodge with the Registrar a statement containing the particulars so...
- Section 490 of Insolvency Act CAP 53: Effect of resolutions passed at adjourned meetings of company's creditors and contributories
If a resolution is passed at an adjourned meeting of a company's creditors or contributories, the resolution is for all purposes taken to have been passed on the date on which it was in fact passed, and not as having been passed on any earlier date.
- Section 491 of Insolvency Act CAP 53: Court may order meetings to be held to ascertain wishes of creditors or contributories
(1) The Court may—
(a) as to all matters relating to the liquidation of a company, have regard to the wishes of the creditors or contributories (as proved to it by any sufficient evidence); and (b) if it considers appropriate, for the purpose of ascertaining those wishes—
(i) direct meetings of...
- Section 492 of Insolvency Act CAP 53: Judicial notice to be taken of documents of the Court
In all proceedings under this Part, all courts and tribunals, all judges and persons acting judicially, and all officers of a court or tribunal, or employed in enforcing the process of a court or tribunal, are required to take judicial notice of—
(a) the signature of an officer of the High Court;...
- Section 493 of Insolvency Act CAP 53: Affidavits required to be sworn for purposes of this Part
(1) An affidavit required to be sworn under or for the purposes of this Part may be sworn in Kenya—
(a) before any court, tribunal, judge or person lawfully authorised to take and receive affidavits; or
(b) before any diplomat representing the Government of Kenya in any place outside...
- Section 494 of Insolvency Act CAP 53: Dissolution (voluntary liquidation)
(1) This section applies to a company in voluntary liquidation if the liquidator has sent to the Registrar the liquidator's final account and return in accordance with section 402 or 414.
(2) As soon as practicable after receiving the account and return, the Registrar shall register them.
(3) At...
- Section 495 of Insolvency Act CAP 53: Early dissolution of company
(1) This section applies when an order for the liquidation of a company has been made by the Court and the Official Receiver is the liquidator of the company.
(2) On being satisfied—
(a) that the realisable assets of the company are insufficient to cover the expenses of the liquidation;...
- Section 496 of Insolvency Act CAP 53: Consequence of notice given under section 495(3)
(1) If a notice has been given in accordance with section 495(3), the Official Receiver or any creditor or contributory of the company may apply to the Court for directions under this section.
(2) The grounds on which such an application may be made are—
(a) that the realisable assets of the...
- Section 497 of Insolvency Act CAP 53: Dissolution otherwise than under sections 494 - 496
(1) This section applies to a notice that is—
(a) served for the purposes of section 468(9); or
(b) from the Official Receiver that the liquidation of a company by the Court is complete.
(2) As soon as practicable after such a notice is lodged for registration, the Registrar shall register...
- Section 498 of Insolvency Act CAP 53: Offence involving commission of fraudulent acts in anticipation of liquidation
(1) This section applies in relation to a company—
(a) in respect of which the Court has made a liquidation order; or
(b) that has passed a resolution for the voluntary liquidation of the company.
(2) An officer or former officer of the company commits an offence if, within the twelve months...
- Section 499 of Insolvency Act CAP 53: Offence involving misconduct committed in course of liquidation of company
(1) This section applies in relation to a company—
(a) in respect of which the Court has made a liquidation order; or
(b) that has passed a resolution for the voluntary liquidation of the company.
(2) An officer or former officer of the company commits an offence if the officer or former...
- Section 500 of Insolvency Act CAP 53: Offences involving transactions to defraud creditors of company in liquidation
(1) This section applies in relation to a company that is in liquidation, whether voluntary or by the Court.
(2) An officer or former officer of the company commits an offence if the officer or former officer—
(a) does not to the best of the officer's or former officer's knowledge and belief fully...
- Section 501 of Insolvency Act CAP 53: Offence to falsify documents in relation to company in liquidation
(1) This section applies in relation to a company that is in liquidation, whether voluntary or by the Court.
(2) An officer or contributory of the company commits an offence if, during the liquidation, the officer or contributory, with intent to defraud or deceive the company or any other person—...
- Section 502 of Insolvency Act CAP 53: Offence to make material omission from statement relating to financial position of company in liquidation
(1) This section applies to a company that is in liquidation, whether voluntary or by the Court.
(2) An officer or former officer of the company commits an offence if, during the liquidation, the officer or former officer makes a material omission from a statement relating to the company's...
- Section 503 of Insolvency Act CAP 53: Offence to make false representations to creditors of company in liquidation
(1) This section applies to a company that is in liquidation, whether voluntary or by the Court.
(2) An officer or former officer of the company commits an offence if—
(a) the officer or former officer makes a false representation; or
(b) does any other fraudulent act, for the purpose of...
- Section 504 of Insolvency Act CAP 53: Power of the Court to make orders against delinquent directors, liquidators, etc.
(1) This section applies to the following persons—
(a) an officer or former officer of a company that is in liquidation (whether by the Court or voluntarily);
(b) a person who is or has acted as the liquidator of such a company;
(c) not being a person referred to in paragraph (a) or (b), a person...
- Section 505 of Insolvency Act CAP 53: Power of the Court to make orders against officers of company and others found to have participated in fraudulent trading by company in liquidation
(1) A liquidator of a company may make an application to the Court to make an order under subsection
(2) if—
(a) in the course of the liquidation of the company, the liquidator forms the view that a business of the company has been carried on with intent to defraud creditors of the company or...
- Section 506 of Insolvency Act CAP 53: Power of the Court to make orders against officers of company engaging in wrongful trading
(1) This section applies—
(a) to a company that is in insolvent liquidation; and
(b) to a person who, at a time before the commencement of the liquidation, was an officer of the company.
(2) For the purposes of this section—
(a) a company is in insolvent liquidation if, at the time the...
- Section 507 of Insolvency Act CAP 53: Supplementary provisions relating to proceedings under sections 505 and 506
(1) On the hearing of an application under section 505 or 506, the liquidator may personally give evidence or call witnesses.
(2) If the Court makes an order under section 505 or 506, it may make such further orders as it considers appropriate for giving effect to the order.
(3) In particular, the...
- Section 508 of Insolvency Act CAP 53: Director of company in insolvent liquidation prohibited from being director of, or being involved with, any other company that is known by a prohibited name
(1) This section applies to a person if—
(a) a company is in insolvent liquidation on or after the commencement of this section; and
(b) the person was a director of the company at any time during the twelve months immediately preceding the date on which the liquidation of the company...
- Section 509 of Insolvency Act CAP 53: Circumstances in which persons are personally liable for debts of company
(1) A person is personally responsible for all the relevant debts of a company if at any time—
(a) the person is involved in the management of the company in contravention of section 508; or
(b) while involved in the management of the company, the person acts or is willing to act on instructions...
- Section 510 of Insolvency Act CAP 53: Prosecution of delinquent officers and members of company in liquidation
(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...