Browse an Act, find a provision and read each section in context.
Browse Acts ↓(1) A company in respect of which a moratorium has effect may not obtain credit exceeding twentyfive thousand shillings from a person who has not been informed that a moratorium has effect in respect of the company. (2) The reference to the company obtaining credit includes (but is not limited to) t…
(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 app…
(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 be…
(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 onl…
(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…
(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 t…
(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 moratorium…
(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 mak…
(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 su…
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.
(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 subsec…
(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 se…
(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 managed…
(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 pr…
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 liquidator.
(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…
(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 formati…
(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 suspected…
(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 tha…
(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, th…
(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 under…
(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 re…
(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 company; (b) requ…
(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…
(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…
(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 office-holder.…
(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 voluntary…
(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 floati…
(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 w…
(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 t…