Insolvency Act · 2022 Revised Edition · Chapter VII
138. Creditors’ voluntary winding up
Official textFrom Attorney General's Chambers, unchanged
This section applies where, in the case of a creditors’ voluntary winding up, a liquidator has been nominated by the company.
company
“company” means a company incorporated or registered under the Companies Act;
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.
property
“property”, in relation to a company, includes money, goods, things in action and every description of property, whether real or personal, and whether in Brunei Darussalam or elsewhere, and also obligations and every description of interest whether present or future or vested or contingent arising out of, or incidental to, property.
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.
Court
“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
Subsection (3) does not apply in relation to the power of the liquidator —
to take into his custody or under his control all the property to which the company is or appears to be entitled;
to dispose of perishable goods and other goods the value of which is likely to diminish if they are not immediately disposed of;
and
to do all such other things as may be necessary for the protection of the company’s assets.
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.
If default is made by —
the company in complying with section 79(1) or (2); or
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.
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
insolvency
“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;
not exceeding $50 for every day or part thereof during which the offence continues after conviction.
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.
Terms defined in this Act
company
Defined · s 3“company” means a company incorporated or registered under the Companies Act;
Court
Defined · s 3“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
insolvency
Defined · s 3“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;
property
Defined · s 3“property”, in relation to a company, includes money, goods, things in action and every description of property, whether real or personal, and whether in Brunei Darussalam or elsewhere, and also obligations and every description of interest whether present or future or vested or contingent arising out of, or incidental to, property.
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