In force2020 Revised Edition

Contents

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

196. Investment of surplus funds on general account

(1)

Whenever the cash balance standing to the credit of any company in liquidation is in excess of the amount which, in the opinion of the committee of inspection or (if there is no committee of inspection) of the liquidator, is required for the time being to answer demands in respect of the estate of the company, the liquidator may, if so directed in writing by the committee of inspection or (if there is no committee of inspection) on the liquidator’s own motion, unless the Court on application by any creditor thinks fit to direct otherwise and so orders —

(a)

invest in securities issued by the Government; or

(b)

place on deposit at interest with any bank, the whole or any part of the excess, and any interest received in respect of the money invested or deposited forms part of the assets of the company.

(2)

Whenever any part of the money so invested or deposited is, in the opinion of the committee of inspection or (if there is no committee of inspection) of the liquidator, required to answer any demands in respect of the company’s estate, the liquidator may, if so directed by the committee of inspection or (if there is no committee of inspection) on the liquidator’s own motion, arrange for the sale or realisation of such part of those securities, or the withdrawal of the whole or such part of the deposit, as is necessary.