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Section 463 of Insolvency Act CAP 53: Liquidator's functions: creditors' voluntary liquidation

    

(1) If, in the case of a creditors' voluntary liquidation, a liquidator has been nominated by the company, the powers conferred on the liquidator by section 462 may not be exercised, except with the
sanction of the Court, during the period before the holding of the creditors' meeting under section 406.
(2) Subsection (1) does not apply to the power of the liquidator—
(a) to assume control of all the property to which the company is or appears to be entitled;
(b) to dispose of perishable goods and other goods the value of which is likely to diminish if they are not immediately disposed of; or
(c) to take all such other action as may be necessary for the protection of the company's assets.
(3) The liquidator shall—
(a) attend the creditors' meeting; and
(b) shall report to the meeting on any exercise by the liquidator of the liquidator's powers (whether or not under this section or under section 420 (questions relating to liquidation may be referred to the Court for determination) or section 471 (release of liquidator in the case of company liquidated by the Court).
(4) If—
(a) the company fails to comply with section 406(1) or (2); or
(b) the directors fail to comply with section 407(1) or (2), the liquidator shall, within seven days after the relevant day, apply to the Court for directions as to the manner in which that default is to be remedied.
(5) In subsection (4), the relevant day is the day on which the liquidator was nominated by the company or the day on which the liquidator first became aware of the default, whichever is the later.
(6) A liquidator who, without reasonable excuse, fails to comply with a requirement of this section commits an offence and on conviction is liable to a fine not exceeding five hundred thousand shillings.

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