ADVOKS GLOBAL · KENYA
Insolvency Act
475. Power of the Court to appoint special manager of company's business or property when company is in liquidation or provisional liquidator appointed
Edition: 2022-12-31 · In force
475. Power of the Court to appoint special manager of company's business or property when company is in liquidation or provisional liquidator appointed
(1)If a company is in liquidation or a provisional liquidator is appointed in respect of the company, the Court may, on an application made under subsection (2), appoint a person to be the special manager of the business or property of the company.(2)An application to the Court to appoint a special manager may be made by the liquidator or provisional liquidator if it appears to the applicant that the nature of the business or property of the company, or the interests of the company's creditors or contributories or members generally, require the appointment of another person to manage the company's business or property.(3)A special manager has such powers as the Court specifies in the special manager's appointment or in directions given as a result of an application by that manager.(4)The Court's power to confer powers to the special manager includes power to direct that any provision of this Act that has effect in relation to a provisional liquidator or liquidator of a company has the same effect in relation to the special manager for the purposes of performing any of the functions of the provisional liquidator or liquidator.(5)A special manager shall—(a)give such security as may be prescribed by the insolvency regulations for the purposes of this section;(b)prepare and keep such accounting records as may be so prescribed; and(c)produce those records in accordance with the insolvency regulations to the Court or to such other persons as may be so prescribed.(6)A special manager's appointment does not take effect until the security referred to in subsection (5)(a) has been given.(7)A special manager who fails to comply with subsection (5)(b) or (c) is guilty of contempt of the Court and is liable to be punished accordingly (in addition to any other punishment to which the person may be subject).