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Section 427 of Insolvency Act CAP 53: Powers of Court on hearing of liquidation application

    

(1) On the hearing of a liquidation application, the Court may make such of the following orders as it considers appropriate—
(a) an order dismissing the application;
(b) an order adjourning the hearing, conditionally or unconditionally;
(c) an interim liquidation order; or
(d) any other order that, in its opinion, the circumstances of the case require.
(2) However, the Court may not refuse to make a liquidation order on the ground only that the company's assets have been mortgaged to an amount equal to or in excess of those assets, or that the company has no assets.
(3) If the application is made by members of the company as contributories on the ground that it is just and equitable that the company should be liquidated, the Court shall make a liquidation order, but only if of the opinion that—
(a) that the applicants are entitled to relief either by liquidating the company or by some other means; and
(b) that, in the absence of any other remedy, it would be just and equitable that the company should be liquidated.
(4) Subsection (3) does not apply if the Court is also of the opinion that—
(a) some other remedy is available to the applicants; and
(b) they are acting unreasonably in seeking to have the company liquidated instead of pursuing that other remedy.

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

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