within a year for winding up the company by the court, the special resolution shall not be valid unless sanctioned by the court. Provisions Specially Applicable to Creditors’ Voluntary Winding Up 251 Application of sections Sections two hundred and fifty-two to two hundred and fifty-four shall apply in relation to a creditors’ voluntary winding up. 252 Meeting of creditors and appointment of liquidator (1 ) The company shall cause a meeting of the creditors of the company to be summoned for the day, or the day next following the day, on which there is to be held the meeting at which the resolution for voluntary wind ing up is to be proposed and shall cause the notices of the said meeting of creditors to be sent by post to the creditors simultaneously with the sending of the notices of the said meeting of the comp any. (2 ) The company shall cause not less than seven days’ notice of the meeting of the creditors to be advertised once in the Gazette and once at least in a newspaper circulating in the district where the registered office or principal place of business of the company is situate. (3 ) The directors of the company shall— (a ) cause a full statement of the position of the company’s affairs together with a list of the creditors of the company and the estimated amount of their claims to be laid before the meeting of creditors to be held as aforesaid; and (b ) appoint one of their number to preside at the said meeting and it shall be his duty to do so. (4 ) If the meeting of the company, at which the resolution for voluntary winding up is to be proposed, is a djourned and the resolution is passed at an adjourned meeting, any resolution passed at the meeting of the creditors held in pursuance of subsection (1) shall have effect as if it had been passed immediately after the passing of the resolution for winding up the company. (5 ) If default is made— (a ) by the company in complying with subsection (1) or (2); (b ) by any director of the company in complying with subsection (3); the company or director, as the case may be, shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment. (6 ) The creditors and the company at their respective meetings mentioned in this section may nominate a person to be liquidator, subject to section two hundred and seventy-four, for the purpose of winding up the affairs and distributing the assets of the company and if the creditors and the company nominate different persons, the person nominated by the creditors shall be liquidator, subject to the provisions of section two hundred and seventy-four as aforesaid, and if no person is nominated by the creditors the person, if any, nominated by the company shall be liquidator, subject to the provisions of section two hundred and seventy-four as aforesaid: Provided that, in the case of different persons being nominated, any director, member or creditor of the company may, within seven days after the date on which the nomination was made by the creditors, apply to the court for an order directing that the person nominated as liquidator by the company shall be liquidator instead of or jointly with the person nominated by the creditors, or appointing some other person to be liquidator instead of the person appointed by the creditors, and the court may thereupon make such order as it thinks fit. (7 ) If a vacancy occurs by death, resignation or otherwise in the office of liquidator appointed by the creditors in a creditors’ voluntary winding up, the vacancy shall be filled in the same manner as is provided in subsection (6). (8 ) Section two hundred and twenty-six shall apply to every liquidator appointed in a creditors’ voluntary winding up. [Section as amended by Act No. 22 of 2001] 253 Powers of liquidator (1 ) All the powers of the directors shall cease except so far as the liquidator or the creditors of the company sanction their continuance. (2 ) The liquidator may, without the sanction of the court and without requiring the authority of the contributories, exercise all powers given by section two hundred and twenty-one to the liquidator in a winding up by the court, subject to such directions as may be given by the creditors. 254 Application of section 250 Section two hundred and fifty shall apply in the case of a creditors’ voluntary winding up as in the case of a members’ voluntary winding up with the modification that the powers of the liquidator under the said section shall not be exercised save with the consent of three-fourths in number and according to the value of their claims, of the creditors present or represented at a meeting called by the liquidator for that purpose and of which at least fourteen days’ notice has been given, or with the sanction of the court.