No. 7/2018
INSOLVENCY
Cap. 6:07
individual estates of every partner, except a partner who is not liable for partnership
debts or a partner in respect of whom there is a lawful bar to the liquidation of his or
her estate:
Provided that if a partner has undertaken to pay the debts of the partnership
within a period determined by the Court and has given security for such payment to the
satisfaction of the registrar, the individual estate of that partner must not be liquidated
by reason only of the liquidation of the estate of the partnership.
(4) Where there is no partner whose estate may be liquidated as contemplated
in subsection (3), the Court may nevertheless liquidate the partnership estate and in
such event every director of a juristic person, which juristic person is a partner in the
partnership in question, and every natural person \vho is a partner but whose estate
may not be liquidated, is, for the purpose of performing any statutory requirement in
respect of the partnership estate, regarded as a person whose estate is under liquidation.
(5) Where the individual estate of a partner is unable to meet fully the costs of
the liquidation of that estate, the balance must be paid out of the partnership estate and
where the partnership estate is unable to meet fully the costs of liquidation the balance
must be paid out of the estates of the other partners.
(6) If a partnership has been dissolved and the partnership estate is unable
to pay its debts, the partnership estate may, on the application of a creditor of the
partnership or a former partner, be liquidated as an insolvent estate and the provisions
of subsections (l), (2), (3), (4) and (5), in so far as they are applicable, apply \Vith the
necessary changes to such liquidation.
8
Abuse of Court's procedures or malicious or vexatious application for
liquidation
Whenever the Court is satisfied that an application for the liquidation of a debtor's
estate is an abuse of the Court's procedures or is malicious or vexatious, the Court may
allow the debtor forthwith to prove any damages which he or she may have sustained
by reason of the application, and award him or her such compensation as it considers
appropriate.
9
Voluntary liquidation of insolvent debtor by resolution
(l) A debtor, other than a natural person, partnership or company that is an
external/foreign company in terms of the Companies Act [Chapter 24:31], \Vhich is
unable to pay its debts or whose liabilities exceed its assets, may be liquidated as a
voluntary liquidation by creditors if the debtor has passed a liquidation resolution
resolving thatthedebtor be liquidated voluntarily as a voluntary liquidation by creditors.
(2) A voluntary liquidation resolution contemplated in subsection (l) is of no
force and effect unless(a)
the liquidation resolution has been filed not more than 3 days after the
resolution has been passed with(i) the Registrar of Deeds in the case of a trust;
(ii) the Registrar of Companies in the case of a company or a private
business corporation;
(iii) the Registrar of Co-operatives in the case of a co-operative;
(iv) the relevant authority responsible for the administration of that
specific type of debtor in the case of another debtor;
and
(b)
the debtor has given all known creditors and the Master at least 14 days
standard notice of the meeting at which the liquidation resolution is to
be considered; and
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