Order for compulsory liquidation, Business Law and Ethics

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Order for compulsory liquidation:

The Official Receiver also calls separate meetings of creditors and of contributories within one month of the order for liquidation: s.236.  Each meeting may nominate a permanent liquidator to replace the Official Receiver and also representatives to serve as members of a committee of inspection (to work with the liquidator).  The Official Receiver reports to the court which may appoint a permanent liquidator and a committee of inspection.  If no other liquidator is appointed (or if the post falls vacant) the Official Receiver continues to act as liquidator.  A liquidator must be an individual and may not be an undischarged bankrupt.

 Notice of the order for compulsory liquidation and of the appointment of a liquidator is given to the registrar and in the Kenya Gazette.  When the liquidator completes his task he reports to the court, which examines his accounts, and makes an order for dissolution of the company.  The order is sent to the registrar who gives notice of it in the Kenya Gazette and dissolves the company: ss.247 and 269.

If while the liquidation is in progress the liquidator decides to call meetings of contributories or creditors he may arrange to do so under powers vested in the court: s.336.


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