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Section 899 of The Companies Act No. 17 of 2015: Circumstances in which application not to be made: other proceedings not concluded

    

(1) An application under section 897 on behalf of a company may not be made(or, if made, may not be dealt with) at a time when—
(a) an application to the Court under Part XXXIV has been made on behalf of the company for the sanctioning of a compromise or arrangement and the matter has not been finally concluded;
(b) a voluntary arrangement in relation to the company has effect under the laws relating to insolvency, or has been proposed under that Part and the matter has not been finally concluded;
(c) the company is under administration;
(d) the company is in liquidation (whether voluntary or by the Court), or an application for the liquidation of the company liquidated by the Court has been made but has not been finally disposed of or been withdrawn; or
(e) in any other circumstances prescribed by the regulations for the purpose of this section.
(2) For the purposes of subsection (1)(a), the matter in Court is finally concluded if—
(a) the application has been withdrawn;
(b) the application has been concluded without a compromise or arrangement being sanctioned by the Court; or
(c) a compromise or arrangement has been sanctioned by the Court and has, together with anything required to be done under any provision made in relation to the matter by order of the Court, been fully carried out.
(3) For the purposes of subsection (1)(b), the matter is finally concluded if—
(a) no meetings are to summoned under an applicable provision of the laws relating to insolvency;
(b) meetings summoned under that law fail to approve the arrangement with no, or the same, modifications;
(c) an arrangement approved by meetings summoned under that Act, or in consequence of a direction under a relevant provision of that Act, has been fully implemented; or
(d) the Court makes an order under a relevant provision of that Act revoking approval given at previous meetings and, if the Court gives any directions under such a provision, the company has done whatever it is required to do under those directions.
(4) A person who makes an application in contravention of subsection (1) commits an offence and on conviction is liable to a fine not exceeding fifty thousand shillings.
(5) In proceedings for such an offence it is a defence for the person charged with the offence to establish on a balance of probabilities that the person did not know, and could not reasonably have known, of the existence of the facts that led to the contravention.

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