ADVOKS GLOBAL · KENYA
Insolvency Act
612. Court may replace administrator when there is a competing floating charge-holder
Edition: 2022-12-31 · In force
612. Court may replace administrator when there is a competing floating charge-holder
(1)If an administrator of a company is appointed under section 534 by the holder of a qualifying floating charge in respect of the company's property, the holder of a prior qualifying floating charge in respect of the company's property may apply to the Court for the administrator to be replaced by an administrator nominated by the holder of the prior floating charge.(2)On the hearing of an application made under subsection (1), the Court may make an order replacing the existing administrator with the person nominated by the applicant, but only if satisfied that to do so would result in the company being administered more effectively and efficiently.(3)An application made under subsection (1) may not be heard unless the existing administrator and the holder of the qualifying floating charge who appointed that administrator have been served with a copy of the application and have been given an opportunity to appear at the hearing as parties(4)The Movable Property Security Rights Act determines whether one floating charge is prior to another for the purposes of this section.