Insolvency Act · s 94

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s 94No liquidator appointed or nominated by company

(1)

This section applies where, in the case of a voluntary winding up, no liquidator has been appointed or nominated by the company.

(2)

The powers of the directors shall not be exercised, except with the sanction of the Court or (in the case of a creditors’ voluntary winding up)

so far as may be necessary to secure compliance with sections 79 and 80, during the period before the appointment or nomination of a liquidator of the company.

(3)

Subsection (2) does not apply in relation to the powers of the directors —

(a)

to dispose of perishable goods and other goods the value of which is likely to diminish if they are not immediately disposed of;

and

(b)

to do all such other things as may be necessary for the protection of the company’s assets.

(4)

If the directors of the company, without reasonable excuse, fail to comply with this section, they are liable to a fine not exceeding $1,000.