ADVOKS GLOBAL · KENYA
Insolvency Act
582. Power of administrator to distribute company's assets to creditors
Edition: 2022-12-31 · In force
582. Power of administrator to distribute company's assets to creditors
(1)The administrator of a company may make a distribution to creditors of the company.(2)Section 471 and the Second Schedule apply in relation to a distribution under this section as they apply in relation to the liquidation of a company.(3)In the case of a creditor of the company who is neither a secured nor a preferential creditor, a payment may be made to the creditor as part of a distribution under this section only with the approval of the Court.(4)An administrator who makes a payment in contravention of subsection (3) is guilty of contempt of the Court and is liable to be punished accordingly (in addition to any other punishment to which the administrator may be subject).