In force2020 Revised Edition

Contents

Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 8 · Winding Up

140. Custody and vesting of company’s property

(1)

Where a winding up order has been made or a provisional liquidator has been appointed, the liquidator or provisional liquidator must take into his or her custody or under his or her control all the property and things in action to which the company is or appears to be entitled.

(2)

The Court may, on the application of the liquidator, by order direct that all or any part of the property of whatever description belonging to the company, or held by trustees on its behalf, vests in the liquidator.

(3)

Upon the making of an order under subsection (2) —

(a)

the property to which the order relates vests in the liquidator; and

(b)

the liquidator may, after giving such indemnity (if any) as the Court directs, bring or defend any action or other legal proceeding that relates to that property, or that is necessary to be brought or defended for the purpose of effectually winding up the company and recovering the property of the company.

(4)

Where an order is made under subsection (2), every liquidator of a company in relation to which the order is made must lodge within 7 days after the making of the order —

(a)

a copy of the order with the Registrar of Companies; and

(b)

where the order relates to land, a copy of the order with the appropriate authority concerned with the registration or recording of dealings in that land,and every liquidator who defaults in complying with this subsection shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $2,000 and also to a default penalty.

(5)

No order made under subsection (2) has any effect or operation in transferring or otherwise vesting land until an appropriate entry or memorandum of the order is made by or with the appropriate authority.