ADVOKS GLOBAL · KENYA
Insolvency Act
566. Administrator to make statement setting out administrator's proposals for achieving the purpose of the administration
Edition: 2022-12-31 · In force
566. Administrator to make statement setting out administrator's proposals for achieving the purpose of the administration
(1)The administrator of a company shall make a statement setting out proposals for achieving the purpose of administration.(2)The administrator shall ensure that the proposals—(a)deal with such matters as may be prescribed by the insolvency regulations for the purposes of this section; and(b)if applicable, explain why the administrator believes that the objective specified in section 522(1)(a) or (b) cannot be achieved.(3)Proposals under this section may include—(a)a proposal for a voluntary arrangement under Part IX; or(b)a proposal for a compromise or arrangement to be sanctioned under the Companies Act (Cap. 486).(4)The administrator—(a)shall send a copy of the statement of the administrator' s proposals—(i)to every creditor of the company of whose claim and address the administrator is aware; and(ii)to every member of the company of whose address the administrator is aware; and(b)shall lodge a copy of the statement with the Registrar for registration.(5)The administrator shall comply with subsection (4)—(a)as soon as is reasonably practicable after the company enters administration; and(b)in any case, not later than sixty days after the date on which the company enters administration,(6)Subsection (4)(a)(ii) is complied with if the administrator publishes in accordance with the insolvency regulations a notice undertaking to provide a copy of the statement of proposals free of charge to any member of the company who applies in writing to a specified address.(7)An administrator who fails, without reasonable excuse, to comply with subsection (5) commits an offence and on conviction is liable to a fine not exceeding five hundred thousand shillings.(8)If, after being convicted of an offence under subsection (7), an administrator continues to fail to comply with the relevant requirement of this section, the administrator commits a further offence on each day on which the failure continues and on conviction is liable to a fine not exceeding fifty thousand shillings for each such offence.(9)A period specified in this section can be varied in accordance with section 622.