Section 78 of Insolvency Act CAP 53: Vacancy in office of bankruptcy trustee
(1) This section applies to a vacancy in the office of bankruptcy trustee that has arisen because—
(a) the appointment of a person as bankruptcy trustee has failed to take effect; or
(b) when such an appointment has taken effect, the person appointed has died, resigned or otherwise ceased to hold the office.
(2) When this section applies to a vacancy, the Official Receiver holds office as bankruptcy trustee until the vacancy is filled.
(3) The Official Receiver may at any time convene a creditors' meeting for the purpose of filling such a vacancy.
(4) If the Official Receiver has not convened, and does not propose to convene, a creditors' meeting for the purpose of filling such a vacancy, any creditor of the bankrupt may request the Official Receiver to convene such a meeting.
(5) If such a request appears to the Official Receiver to be made with the concurrence of not less than one-quarter in value of the bankrupt's creditors (including the creditor making the request), the Official Receiver shall convene the requested meeting.
(6) A reference in this section to a vacancy includes a case in which it is necessary, in relation to particular property that is or may be included in a bankrupt's estate, to revive the trusteeship of the estate after the holding of a final meeting convened under section 253 or after the Official Receiver has given notice under section 76(2) or 77(2).
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- Section 79 - General control of bankrupt trustee by the Court
(1) If, in relation to the bankruptcy trustee in respect of a bankrupt's estate, a person (including the bankrupt or a creditor of the bankrupt) is dissatisfied with any act, omission to act or...
- Section 80 - Liability of bankruptcy trustee for misapplication of money, etc.
(1) Any of the following persons make an application to the Court for an order under this section relating to a bankruptcy trustee's administration of a bankrupt's estate— (a) the Official...
- Section 81 - Kinds of creditors' meetings
There are two kinds of creditors' meetings—
(a) the first meeting of creditors; and (b) subsequent creditors' meetings.
- Section 82 - Subsequent meetings of creditors
(1) The bankruptcy trustee may at any time convene a meeting of creditors after the first meeting of creditors.
(2) The bankruptcy trustee shall convene such a meeting if— (a) requested to do so by a...
- Section 83 - Meeting and resolution not defective for lack of notice
A meeting of creditors convened by notice to creditors, and a resolution passed at the meeting, is valid even if some creditors may not have received the notice, unless the Court orders otherwise.
- Section 84 - Appointment of Chairperson to conduct creditor’s' meetings
(1) The Chairperson of a creditors' meeting is the bankruptcy trustee or a person appointed by the bankruptcy trustee to be the Chairperson.
(2) However, if neither the bankruptcy trustee nor the...
- Section 85 - Power of Chairperson to adjourn creditors' meeting
The Chairperson of a creditors' meeting may adjourn the meeting from time to time and place to place.
- Section 86 - Bankruptcy trustee to report to creditors' meeting
If the bankruptcy trustee attends a creditors' meeting or an adjournment of the meeting, the bankruptcy trustee shall—
(a) report on the administration of the bankrupt's estate;
(b) give any...
- Section 87 - Who can attend creditors' meeting
(1) A person may attend a creditors' meeting—
(a) by being physically present at the time, date and place appointed for the meeting; or
(b) if the bankruptcy trustee makes it available, by means of...
- Section 88 - Bankrupt may be required to attend creditors' meeting and be questioned
(1) The bankrupt shall, if required by the bankruptcy trustee, attend all creditors' meetings by being physically present or present by an audio or audio-visual link.
(2) The following persons may...
- Section 89 - Attendance at creditors' meeting by non-creditors
A person who is not a creditor of the bankrupt may attend a creditors' meeting with the consent of— (a) the bankruptcy trustee; or
(b) the creditors attending the meeting, voting by ordinary...
- Section 90 - Minutes and record of creditors' meeting
(1) The bankruptcy trustee shall ensure that minutes are kept of each creditors' meeting.
(2) The minutes are invalid unless signed by the bankruptcy trustee or the Chairperson of the...
- Section 91 - Number of persons required for creditors' meeting to be valid
(1) A creditors' meeting is not valid unless at least the following persons attend— (a) the bankruptcy trustee or a person who represents the bankruptcy trustee; (b) a creditor or a person who...
- Section 92 - Who can represent creditors and bankrupt at creditors' meeting
(1) Any of the following persons may represent a creditor at a creditors' meeting— (a) an advocate;
(b) a certified public accountant;
(c) a person who keeps the creditor's or bankrupt's accounting...
- Section 93 - Passing of resolutions at creditors' meetings
(1) At a creditors' meeting—
(a) an ordinary resolution is passed if a majority in number and value of the creditors, or their proxies, who attend and who vote on the resolution vote in favour of it;...
- Section 94 - What votes can be counted for passing of resolutions at creditors' meeting
(1) A creditor who is entitled to vote at a creditors' meeting may vote on a resolution to be put to the meeting—
(a) by postal vote; or
(b) by electronic vote, if the voting paper for the...
- Section 95 - Who may vote at creditors' meeting
Creditors of the bankrupt who are entitled to vote, or their representatives, may vote at a creditors' meeting, but this rule is subject to sections 96 to 98.
- Section 96 - When secured creditor may vote at creditors' meeting
A debt that is secured only entitles the creditor to vote at a creditors' meeting if the creditor has— (a) surrendered the charge;
(b) valued the charge; or (c) realised the charge.
- Section 97 - When creditor under bill of exchange or promissory note may vote at creditors' meeting
(1) A debt on, or secured by, a current bill of exchange or promissory note entitles the creditor to vote only if the creditor is willing to take the following steps—
(a) to treat a qualifying...
- Section 98 - Person disqualified from voting at creditor's meeting through preferential effect
(1) A person is not entitled to vote in favour of a resolution that would, if passed, directly or indirectly enable that person or any of the following persons to receive remuneration from the...
- Section 99 - Entitlement of partner's creditor to prove debt at creditors' meeting
The bankruptcy of a partner of a firm who is indebted to a creditor jointly with one or more of the other partners entitles the creditor to prove the debt for the purpose of voting at any creditors'...
- Section 100 - Creditors may appoint expert or committee to assist bankruptcy trustee
(1) A creditors' meeting may pass an ordinary resolution—
(a) appointing an expert to assist the bankruptcy trustee in the administration of the bankrupt's estate; and
(b) providing for the expert's...
- Section 101 - Creditors' right to inspect documents
A creditor who has lodged a creditor's claim, or an advocate or a certified public accountant who is acting for the creditor, is entitled at any reasonable time to inspect or take copies of—
(a) the...
- Section 102 - Committee of creditors may be established
(1) A general meeting of the creditors of a bankrupt may establish a creditors' committee to perform the functions conferred on it by or under this Part.
(2) A general meeting of the creditors of a...
- Section 103 - Exercise by Cabinet Secretary of functions of creditor's committee
(1) A creditors' committee may not perform its functions if at any time the Official Receiver is bankruptcy trustee in respect of the bankrupt's estate.
(2) If, in the case of a bankruptcy, no...
- Section 104 - Status of property acquired during bankruptcy
(1) Until the bankrupt is discharged—
(a) all property (whether in or outside Kenya) that the bankrupt acquires or that passes to the bankrupt vests in the bankruptcy trustee without that trustee...
- Section 105 - Property vests in replacement bankruptcy trustee
If the bankruptcy trustee is replaced, the property and powers vested in the former bankruptcy trustee under this Act vest in the replacement bankruptcy trustee.
- Section 106 - Property held in trust by bankrupt
Property held by the bankrupt in trust for another person vests in the bankruptcy trustee, who shall assume control of the property and deal with it for the benefit of the beneficiaries of the trust.
- Section 107 - Court may order money due to bankrupt to be assigned to bankruptcy trustee
(1) If a bankruptcy trustee considers it necessary to do so, the bankruptcy trustee may apply to the Court for an order under subsection (2).
(2) On the hearing of an application made under...
- Section 108 - Certain payments to be applied in accordance with the Second Schedule
The bankruptcy trustee shall apply the following payments in accordance with the Second Schedule
(Priority of payments to preferential creditors—
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- Section 109 - When execution creditor may retain execution proceeds
(1) This section applies if a bankruptcy order has been made in respect of a debtor but, before the order was made, a creditor has—
(a) issued execution against the debtor's property; or (b) attached...
- Section 110 - Effect of notice to judicial enforcement officer of bankruptcy
(1) This section applies if a judicial enforcement officer who has taken the property of a debtor in execution is served with notice of the debtor's bankruptcy—
(a) before the property is sold;...
- Section 111 - Judicial enforcement officer to retain proceeds of execution for fourteen days after sale
(1) This section applies if, under execution of a judgment for an amount exceeding ten thousand shillings, the judicial enforcement officer—
(a) sells property of the debtor; or
(b) is paid money in...
- Section 112 - Purchaser under sale by judicial enforcement officer acquires good title
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- Section 113 - Court may set aside rights conferred on bankruptcy trustee
(1) An execution creditor may make an application to the Court for an order setting aside the rights of the bankruptcy trustee under section 110 or 111.
(2) On the hearing of an application made...
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- Section 115 - Executions and attachments in good faith
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- Section 116 - When execution or attachment completed for purposes of sections 109 and 115
For the purposes of sections 109 and 115—
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(b) an attachment of a debt is completed by receipt of the debt; and
(c) an execution...
- Section 117 - Bankruptcy trustee's interest in property passes to transferee
If the bankruptcy trustee's interest in property is acquired by or passes to a bankrupt after bankruptcy has commenced—
(a) the bankruptcy trustee's interest in the property ends; and
(b) that...
- Section 118 - Bankruptcy trustee may disclaim onerous property
(1) The bankruptcy trustee may disclaim onerous property, subject to section 121.
(2) Subsection (1) applies even if the bankruptcy trustee has taken possession of the property, tried to sell it, or...
- Section 119 - Effect of disclaimer
A disclaimer by the bankruptcy trustee—
(a) terminates, on and from the date of the disclaimer, the rights, interests, and liabilities of the bankruptcy trustee and the bankrupt in relation to the...
- Section 120 - Position of person who suffers loss as result of disclaimer
(1) A person who sustains loss or damage as a result of disclaimer by the bankruptcy trustee may—
(a) claim as a creditor in the bankruptcy for the amount of the loss or damage, taking account of the...
- Section 121 - Bankruptcy trustee may be required to elect whether to disclaim
The bankruptcy trustee loses the right to disclaim onerous property if—
(a) a person whose rights would be affected by the disclaimer has sent the bankruptcy trustee a notice requiring the bankruptcy...
- Section 122 - Liability for rentcharge on bankrupt's land after disclaimer
(1) If land disclaimed by the bankruptcy trustee is subject to a rentcharge, the vesting of that land in any other person (including the State), or the person's successors in title, does not make any...
- Section 123 - Transmission of interest in land
(1) This section applies to an interest in land that—
(a) is owned by the bankrupt;
(b) is subject to a mortgage or a charge; and
(c) is not disclaimed by the bankruptcy trustee.
(2) The...
- Section 124 - Bankruptcy trustee cannot claim interest in land if bankrupt remains in possession until discharge
(1) The bankruptcy trustee cannot, after the bankrupt's discharge, claim an interest in land to which section 123(1) applies and for which the bankruptcy trustee has not registered a transmission if...
- Section 125 - Bankruptcy trustee may transfer shares and other securities
(1) The bankruptcy trustee may transfer the following property belonging to the bankrupt in the same way as the bankrupt could have transferred it but for the bankruptcy—
(a) securities of a...
- Section 126 - Bankruptcy trustee may disclaim liability under shares
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- Section 127 - Bankruptcy trustee may disclaim liability under shares
(1) The bankruptcy trustee may disclaim a liability under shares owned by the bankrupt in a company by disclaiming them as onerous property in accordance with section 118.
(2) Neither section 120 nor...
- Section 128 - Bankruptcy trustee may be required to elect whether to disclaim liability under shares
The bankruptcy trustee loses the right to disclaim liability under shares if—
(a) the company or a person who has an interest in the shares has sent the bankruptcy trustee a notice requiring that...