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Section 545 of The Companies Act No. 17 of 2015: Application of proceeds of sale under order of Court

    

(1) If shares are sold in accordance with an order of the Court under section544, the seller shall pay the proceeds of the sale, less the costs of the sale, into court for the benefit of the persons who hold beneficial interests in the shares.
(2) A person who holds a beneficial interest in the shares may apply to the Court for the whole or part of those proceeds to be paid to the person.
(3) On the hearing of such an application, the Court shall, subject to subsection(4), make an order directing that the applicant be paid—
(a) the whole of the proceeds of sale together with any interest on them; or
(b) if another person had a beneficial interest in the shares at the time of their sale—the proportion of the proceeds calculated in accordance with the following formula—
PP = TV x AI
—
TV
where—
“PP” represents the proportion of the proceeds to be paid;
“TV” represents the total value of the shares;
“AI” represents the value of the applicant’s interest in the shares.
(4) If the Court has made an order under section 544(5) directing that the costs of an applicant under that section are to be paid from the proceeds of sale, the applicant is entitled to payment of the applicant's costs from those proceeds before any person who holds an interest in the shares receives any part of those proceeds.

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Disclaimer: This document is not to be taken as legal advise.

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