Browse an Act, find a provision and read each section in context.
Browse Acts ↓(1) If a provision of this Part relating to a company under administration provides that a period can be varied in accordance with this section, the Court may vary the period on the application of the administrator of the company. (2) A period of time period can be extended under this section— (a) m…
(1) A period specified in section 566(5) or 568(1) may be varied in respect of a company by the administrator with consent. (2) In subsection (1), "consent" means— (a) the consent of each secured creditor of the company; and (b) if the company has unsecured debts, the consents of creditors whose deb…
In this Division— "prescribed publication", in relation to a company, means— (a) a newspaper circulating in the area in which the company carries on business; (b) the company's website (if any); or (c) any other publication of a description prescribed by the insolvency regulations for the purposes o…
(1) The directors of a company may make a proposal under this Division to the company and to its creditors for a voluntary arrangement under which the company enters into a composition in satisfaction of its debts or a scheme for arranging its financial affairs. (2) In making such a proposal, the di…
(1) This section applies if the provisional supervisor in respect of a director's proposal is not the liquidator or administrator of the company and the directors do not propose to take steps to obtain a moratorium for the company under Division 2. (2) The provisional supervisor shall, within thirty…
(1) If the provisional supervisor appointed under section 625 is not the liquidator or administrator and has reported to the Court that the meetings referred to in section 626(2) should be convened, that supervisor shall, unless the Court otherwise directs, convene those meetings to be held on the d…
(1) The main purpose of a meeting convened under section 627 is to decide whether to approve the proposal or that proposal with modifications. (2) At the beginning of a creditors' meeting, the meeting shall elect one of their number to be Chairperson of the meeting. (3) At the first meeting of the c…
(1) This section applies to the decisions taken at the meeting of the company and the meeting of the company's creditors held in accordance with section 628 to consider a directors' proposal (with or without modifications). (2) The proposal (including any modifications) is approved if— (a) it is a a…
(1) A directors' proposal (with or without modifications) takes effect as a voluntary arrangement by the company on the day after the date on which it is approved by the Court by order made under section 629(7)(a) or on such later date as may be specified in the order. (2) On taking effect, a volunt…
(1) The following persons may make an application to the Court for an order under this section— (a) a person who was entitled to vote at the meeting of the company or the meeting of its creditors; (b) a person who would have been so entitled if the person had had notice of the relevant meeting; (c)…
(1) An officer of a company who— (a) makes a false representation for the purpose of obtaining the approval of the members or creditors of a company to a proposal for a voluntary arrangement; or (b) fraudulently does, or omits to do, any act for that purpose, commits an offence and on conviction is…
(1) When a proposal takes effect as a voluntary arrangement, the supervisor becomes responsible for implementing the arrangement in the interests of the company and its creditors and monitoring compliance by the company with the terms of the arrangement. (2) If, in relation to a voluntary arrangemen…
(1) This section applies if— (a) a moratorium under has been obtained for a company under this Division; or (b) the approval of a voluntary arrangement in relation to a company has taken effect under section 630 or 666. (2) If it appears to the supervisor that any past or present officer of the comp…
For the purposes of this Division, a voluntary arrangement the approval of which has taken effect under section 630(1) ends prematurely if, when it ceases to have effect, it has not been fully implemented in respect of all persons bound by the arrangement because of section 630(2).
(1) In this Part— "agreement" includes an agreement or undertaking effected by contract, deed or any other document intended to have effect in accordance with the law of Kenya or another jurisdiction; "beginning of the moratorium" has the meaning given by section 645(1); "lodgement date" means the d…
This Division has effect with respect to— (a) companies eligible for a moratorium; (b) the procedure for obtaining such a moratorium; (c) the effects of such a moratorium; and (d) deleted by Act No. 1 of 2021.
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 by another provision of this Part; and (c) is financially distressed.
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 banking business, a financial business or the business of a mortgage finance company; (b) a company…
(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 of which a voluntary arrangement already has effect; (d) a company in respect of which a provisional li…
(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 step-in rights. (2) In subsection (1), "public-private partnership project" means a project— (a) the r…
(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 include evidence that it will assist in agreeing an informal restructuring or other agreement with cr…
(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 a moratorium and the basis of that eligibility; (c) a statement from the monitor that the monitor has…
(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 takes effect, unless the moratorium period is extended under section 669. (3) Deleted by Act No. 1 of 202…
(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 the directors who is in default commits an offence and on conviction is liable to a fine not exceedi…
(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 area in which the company has its principal place of business in Kenya; and (iii) on the company's webs…
(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 has its principal place of business in Kenya; and (iii) on the company's website (if any), a notice t…
(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 with the consent of the monitor or with the approval of the Court; and (ii) if the Court gives approva…
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 benefit the company.
(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 to 657 does not of itself— (a) render the transaction void; or (b) make it unenforceable against the…
(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 form) issued by or on behalf of the company, and all the company's websites, specifies— (a) the monitor…