Insolvency Act · s 138

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138.
Creditors’ voluntary winding up
(1) This section applies where, in the case of a creditors’ voluntary winding up, a liquidator has been nominated by the company.
(2) The exercise by the liquidator of the power to sell any of the property of the company shall not be challenged on the ground of any prior inhibition.
(3) The powers conferred on the liquidator by section 137 shall not be exercised, except with the sanction of the Court, during the period before the holding of the meeting of the company’s creditors under section 79.
(4) Subsection (3) does not apply in relation to the power of the liquidator —
(a) to take into his custody or under his control all the property to which the company is or appears to be entitled;
(b) to dispose of perishable goods and other goods the value of which is likely to diminish if they are not immediately disposed of;
and
(c) to do all such other things as may be necessary for the protection of the company’s assets.
(5) The liquidator shall attend the meeting of the company’s creditors held under section 79 and shall report to the meeting on any exercise by him of his powers.
(6) If default is made by —
(a) the company in complying with section 79(1) or (2); or
(b) the directors in complying with section 80(1), (2) or (3), the liquidator shall, within 7 days of the relevant date, apply to the Court for directions as to the manner in which that default is to be remedied.
(7) A liquidator who, without reasonable excuse, fails to comply with this section is guilty of an offence and liable on conviction to a fine not exceeding $1,000, and, in the case of a continuing offence, with a further fine

Insolvency 110
not exceeding $50 for every day or part thereof during which the offence continues after conviction.
(8) In this section, “relevant date” means the date on which the liquidator was nominated by the company or the day on which he first became aware of the default, whichever is the later.

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s 138Creditors’ voluntary winding up

(1)

This section applies where, in the case of a creditors’ voluntary winding up, a liquidator has been nominated by the company.

(2)

The exercise by the liquidator of the power to sell any of the property of the company shall not be challenged on the ground of any prior inhibition.

(3)

The powers conferred on the liquidator by section 137 shall not be exercised, except with the sanction of the Court, during the period before the holding of the meeting of the company’s creditors under section 79.

(4)

Subsection (3) does not apply in relation to the power of the liquidator —

(a)

to take into his custody or under his control all the property to which the company is or appears to be entitled;

(b)

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

and

(c)

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

(5)

The liquidator shall attend the meeting of the company’s creditors held under section 79 and shall report to the meeting on any exercise by him of his powers.

(6)

If default is made by —

(a)

the company in complying with section 79(1) or (2); or

(b)

the directors in complying with section 80(1), (2) or (3), the liquidator shall, within 7 days of the relevant date, apply to the Court for directions as to the manner in which that default is to be remedied.

(7)

A liquidator who, without reasonable excuse, fails to comply with this section is guilty of an offence and liable on conviction to a fine not exceeding $1,000, and, in the case of a continuing offence, with a further fine

Insolvency 110

not exceeding $50 for every day or part thereof during which the offence continues after conviction.

(8)

In this section, “relevant date” means the date on which the liquidator was nominated by the company or the day on which he first became aware of the default, whichever is the later.