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Section 496 of Insolvency Act CAP 53: Consequence of notice given under section 495(3)

    

(1) If a notice has been given in accordance with section 495(3), the Official Receiver or any creditor or contributory of the company may apply to the Court for directions under this section.
(2) The grounds on which such an application may be made are—
(a) that the realisable assets of the company are sufficient to cover the expenses of the liquidation;
(b) that the affairs of the company do require further investigation; or
(c) that for any other reason the early dissolution of the company is inappropriate.
(3) Directions under this section—
(a) are directions making such provision as the Court considers appropriate for enabling the liquidation of the company to proceed as if no notice had been given under section 495(3); and
(b) may, in the case of an application under section 495(7), include a direction deferring the date at which the dissolution of the company is to take effect for such period as the Court considers appropriate.
(4) Within seven days after directions are given under this section, the person on whose application directions were given, shall lodge with the Registrar for registration a copy of the directions or determination.
(5) A person who, without reasonable excuse, fails to lodge a copy as required by subsection (4) commits an offence and on conviction is liable to a fine not exceeding two hundred thousand shillings.
(6) If, after being convicted of an offence under subsection (5), the person continues to fail to lodge the relevant copy with the Registrar for registration, the person commits a further offence on each day on which the failure continues and on conviction is liable to a fine not exceeding twenty thousand shillings for each such offence.

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

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