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Section 438 of Insolvency Act CAP 53: Functions and powers of Official Receiver in relation to office of liquidator

    

(1) Subsections (2) to (7) have effect, subject to section 441 when the Court makes an order for the company to be liquidated.
(2) The Official Receiver becomes the liquidator of the company and continues in office until some other person becomes liquidator under this Part.
(3) The Official Receiver is the liquidator during any vacancy in the office of liquidator.
(4) At any time while liquidator of the company, the Official Receiver may convene separate meetings of the company's creditors and the company's contributories for the purpose of choosing a person to be liquidator of the company in place of the Official Receiver.
(5) The Official Receiver shall—
(a) as soon as practicable during the three months from and including the date on which the liquidation order was made, decide whether to exercise the power under subsection (4) to convene meetings;
(b) if in accordance with paragraph (a), the Official Receiver decides not to exercise that power— give notice of the decision, before the end of that period, to the Court and to the company's creditors and contributories; and
(c) (whether or not a decision to exercise that power has been made) exercise the power to convene meetings under subsection (4) if requested to do so by creditors who hold not less than one quarter in value of the total amount of the company's debts.
(6) If the duty imposed by subsection (5)(c) arises before the Official Receiver has performed the duty imposed by subsection (5)(a) or (b), the Official Receiver is not required to perform the latter duty.
(7) The Official Receiver shall include in a notice given under subsection (5)(b) an explanation of the creditors' power under subsection (5)(c) to require the Official Receiver to convene meetings of the company's creditors and contributories.

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

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