ADVOKS GLOBAL · KENYA
Insolvency Act
508. Director of company in insolvent liquidation prohibited from being director of, or being involved with, any other company that is known by a prohibited name
Edition: 2022-12-31 · In force
508. Director of company in insolvent liquidation prohibited from being director of, or being involved with, any other company that is known by a prohibited name
(1)This section applies to a person if—(a)a company is in insolvent liquidation on or after the commencement of this section; and(b)the person was a director of the company at any time during the twelve months immediately preceding the date on which the liquidation of the company commenced.(2)For the purposes of this section, a name is a prohibited name in relation to such a person if—(a)it is a name by which the company was known at any time during that period of twelve months; or(b)it is a name that is so similar to a name of the kind referred to in paragraph (a) as to suggest an association with the company.(3)Except with approval of the Court, or in such circumstances as may be prescribed by the insolvency regulations, a person to whom this section applies shall not at any time during the five years from and including the date on which the liquidation of the company commenced—(a)be a director of any other company, or any limited liability partnership, that is known by a prohibited name;(b)in any way (directly or indirectly) be concerned or take part in the promotion, formation or management of any such company or partnership; or(c)in any way (directly or indirectly) be concerned or take part in the carrying on of a business carried on (otherwise than by a company or limited liability partnership) under a prohibited name.(4)A person who contravenes this section commits an offence and on conviction is liable to a fine not exceeding one million shillings or to imprisonment for a term not exceeding twelve months, or to both.(5)A reference in this section, in relation to a time, to a name by which a company or limited liability partnership is known is a reference to the name of the company or partnership at that time or to any name under which the company or partnership carried on business at that time.(6)For the purposes of this section, a company is in insolvent liquidation if, at the time the liquidation commences, the company's assets are insufficient for the payment of its debts and other liabilities and the expenses of the liquidation.(7)In this section, "company" includes a company to which Part VII applies.