Section 623 of Insolvency Act CAP 53: Certain specified period can be varied by consent
(1) A period specified in section 566(5) or 568(1) may be varied in respect of a company by the administrator with consent.
(2) In subsection (1), "consent" means—
(a) the consent of each secured creditor of the company; and
(b) if the company has unsecured debts, the consents of creditors whose debts amount to more than fifty percent in value of the company's unsecured debts, disregarding debts of any creditor who does not respond to an invitation to give or withhold consent.
(3) However, if the administrator has made a statement of the kind to which section 569(1)(b) applies,
"consent" means—
(a) the consent of each secured creditor of the company; or
(b) if the administrator believes that a distribution may be made to preferential creditors—
(i) the consent of each secured creditor of the company; and
(ii) the consents of preferential creditors whose debts amount to more than fifty percent in value of the total preferential debts of the company, disregarding debts of any creditor who does not respond to an invitation to give or withhold consent.
(4) Consent for the purposes of subsection (1) may be—
(a) written; or
(b) signified orally at a creditors' meeting.
(5) The power to extend under subsection (1)—
(a) may be exercised in respect of a period only once;
(b) may not be exercised to extend a period by more than thirty days;
(c) may not be exercised to extend a period that has been extended by the Court; and (d) may not be exercised to extend a period after it has expired.
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- Section 624 - Interpretation: Division 1
In this Division—
"prescribed publication", in relation to a company, means—
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(b) the company's website (if any);...
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- Section 626 - Procedure if provisional supervisor is not the liquidator or administrator
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- Section 627 - Provisional supervisor to convene meetings of company and of its creditors
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- Section 628 - Conduct of meetings of company and its creditors
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(2) At the beginning of a creditors' meeting, the...
- Section 629 - Approval of proposal for voluntary arrangement
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- Section 630 - Approved proposal to take effect as voluntary arrangement and to be binding on company and its creditors
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- Section 631 - Certain persons may challenge decisions relating to approved voluntary arrangement by making application to the Court
(1) The following persons may make an application to the Court for an order under this section—
(a) a person who was entitled to vote at the meeting of the company or the meeting of its...
- Section 632 - Offences involving false representations and fraudulent acts by company officers
(1) An officer of a company who—
(a) makes a false representation for the purpose of obtaining the approval of the members or creditors of a company to a proposal for a voluntary arrangement;...
- Section 633 - Implementation of approved voluntary arrangement
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- Section 634 - Prosecution of delinquent officers of company
(1) This section applies if—
(a) a moratorium under has been obtained for a company under this Division; or
(b) the approval of a voluntary arrangement in relation to a company has taken effect...
- Section 635 - When voluntary arrangement comes to an end prematurely
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- Section 636 - Interpretation: Part 2
(1) In this Part—
"agreement" includes an agreement or undertaking effected by contract, deed or any other document intended to have effect in accordance with the law of Kenya or another...
- Section 637 - Application of Part 2
This Division has effect with respect to— (a) companies eligible for a moratorium;
(b) the procedure for obtaining such a moratorium;
(c) the effects of such a moratorium; and (d) deleted by Act No....
- Section 638 - Eligible companies
A company is eligible to obtain a moratorium if it—
(a) complies with such requirements (if any) as may be prescribed by the insolvency regulations;
(b) is not declared to be an ineligible company...
- Section 639 - Banking and insurance companies ineligible to obtain moratorium
The following companies are ineligible companies for the purposes of section 638:
(a) a company that holds a licence granted under section 5 of the Banking Act (Cap. 488) authorising it to carry on a...
- Section 640 - Companies under administration, etc., ineligible to obtain moratorium
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(a) a company that is under administration;
(b) a company that is in liquidation;
(c) a company in respect...
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(1) Deleted by Act No. 1 of 2021
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(i) a document setting out why a moratorium is desirable, which may...
- Section 644 - What directors have to do to obtain moratorium
(1) To obtain a moratorium, the directors of a company shall lodge with the Court—
(a) the documents referred to in section 643(2)(a);
(b) a statement to the effect that the company is eligible for...
- Section 645 - Duration of moratorium
(1) A moratorium takes effect when the documents specified in section 644(1) are lodged with the Court.
(2) A moratorium ends after thirty days from and including the day on which the moratorium...
- Section 646 - What happens when moratorium takes effect
(1) When a moratorium takes effect in respect of a company, the directors of the company shall immediately give notice of that fact to the monitor.
(2) If subsection (1) is not complied with, each of...
- Section 647 - Duty of monitor to publish and give notice that moratorium has taken effect
(1) As soon as practicable after being notified that a moratorium has taken effect, the monitor shall— (a) publish—
(i) once in the Gazette;
(ii) once in at least two newspapers circulating in the...
- Section 648 - Notification of end of moratorium to be given by monitor
(1) Within fourteen days after a moratorium has come to an end, the monitor shall— (a) publish—
(i) once in the Gazette;
(ii) once in at least two newspapers circulating in area in which the company...
- Section 649 - Effect of moratorium on creditors and others
(1) While a moratorium has effect in respect of a company—
(a) an application for liquidation of the company may not be made; (b) a meeting of the company may be convened or requisitioned—
(i) only...
- Section 651 - Security not to be enforced unless it would benefit the company
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- Section 652 - Application of sections 653 to 657 to company in respect of which a moratorium has effect
(1) Sections 653 to 657 apply to a company in respect of which a moratorium currently has effect.
(2) The fact that a company enters into a transaction in contravention of a provision of sections 653...
- Section 653 - Company invoices and other documents to state monitor's name and that moratorium has effect
(1) A company in respect of which a moratorium has effect shall ensure that every invoice, order for goods or services, business letter or order form (whether in hard copy, electronic or any other...
- Section 654 - Restrictions on company obtaining credit during moratorium
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- Section 655 - Restrictions on disposal of property and making payments by company
(1) Subject to subsection (2), a company in respect of which a moratorium has effect may dispose of any of its property only if—
(a) there are reasonable grounds for believing that the disposal will...
- Section 656 - Restriction on company paying debts and other liabilities
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- Section 657 - Circumstances in which company may dispose of property and goods that are subject to a security or held under credit purchase transaction
(1) This section applies to—
(a) property of the company that is subject to a security; and
(b) goods that are in the possession of the company under a credit purchase transaction.
(2) A company...
- Section 658 - Monitor's to monitor activities of company during moratorium
(1) During the moratorium, the monitor is responsible for monitoring the company's activities in order to ascertain whether the company is likely to have sufficient funds available to it during the...
- Section 659 - Withdrawal of monitor's consent to act
(1) Except with the approval of the Court, a provisional supervisor may withdraw consent to monitor a moratorium only if, during the moratorium—
(a) the monitor concludes that the company will not...
- Section 660 - Creditors and others may challenge monitor's conduct during moratorium by application made to the Court
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- Section 661 - Creditor may pursue claim against monitor for loss
(1) If there are reasonable grounds for believing that—
(a) as a result of any act, omission or decision of the monitor during the moratorium, the company has sustained loss; and
(b) the company...
- Section 662 - Replacement of monitor by the Court
(1) An application may be made to the Court for an order under subsection (2)—
(a) if the monitor has failed to comply with any duty imposed on that monitor under this Part or has died, by the...
- Section 669 - Extension of moratorium
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- Section 670 - Conditions for extension of moratorium
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- Section 671 - Decisions to extend or further extend moratorium
(1) If the Court extends, or further extends, the moratorium, the monitor shall within seven days of the order, lodge a copy of the order with the Registrar for registration.
(2) Deleted by Act No. 1...
- Section 674 - Member or creditor of company may challenge actions of directors
(1) This section applies to and in relation to acts or omissions of the directors of a company during a moratorium.
(2) A creditor or member of the company may apply to the Court for an order under...
- Section 675 - Offences under this Division
(1) This section applies to a company in respect of which a moratorium has or had effect.
(2) A person who, at any time during the twelve months immediately preceding the date on which the moratorium...
- Section 677 - Interpretation: Part X
In this Part—
"deliver", in relation to documents or other property, includes surrender and transfer;
"relevant office-holder" means—
(a) in relation to a company under administration, the...
- Section 678 - Realising property of company that is in liquidation or under administration
(1) This section applies to a company that is under administration or in liquidation.
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- Section 679 - Duty of certain persons to co-operate with relevant office-holder
(1) In this section, “relevant office holder", in relation to a company, also includes the Official Receiver even if not the liquidator.
(2) This section applies to the following persons—
(a) those...
- Section 680 - Power of the Court to conduct inquiry into insolvent company's dealings, etc., on application made by relevant office-holder
(1) In this section, "relevant office holder", in relation to a company, includes the Official Receiver even if not the liquidator.
(2) On the application of the relevant office-holder, the Court may...
- Section 681 - Court's enforcement powers under section 680
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- Section 682 - Power of the Court to set aside transaction that is under value
(1) This section applies to a company that is under administration or in liquidation.
(2) In this section, "relevant time" has the meaning given by section 684.
(3) On forming the reasonable belief...
- Section 683 - Power of the Court to void certain preferences
(1) In this section, "relevant time" has the meaning given by section 684.
(2) If of the view that a company has at a relevant time given a preference to a person, the relevant office-holder may...
- Section 684 - What "relevant time" means in sections 682 and 683
(1) Subject to subsection (3), the time at which a company enters into a transaction at an undervalue is a relevant time if the transaction is entered into at a time—
(a) during the two years...