Cap. 6:07
!!'\SOLVENCY
No. 7/2018
or to refrain from opposing an application for the rehabilitation of a debtor, or as a
consideration for his or her acceptance of an offer of composition or for supporting or
refraining from opposing an application for the rehabilitation of a debtor.
(2) Any person who has accepted or agreed to accept any such benefit, whether
for himself or herself or for any other person, is liable to pay, by way of penalty, for
the benefit of the other creditors of the insol\·ent estate(a)
a sum equal to the amount of any claim proved by him or her against the
estate; and
(b)
the amount or value of the benefit promised or given; and
(c)
in the case of a composition, the amount paid or to be paid to him or her
under the composition.
(3) The liquidator is competent to enforce the penalty referred to in subsection
(1) and if he or she fails to do so any creditor of the estate may enforce the penalty in
the name of the liquidator, if he or she indemnifies the liquidator against all costs in
connection \Yith such action.
PART XX
SPECIAL PROVISIONS RELATING TO TRUSTS, COMPANIES AND OTHER DEBTORS IN
LIQUIDATION OTHER THAN NATURAL PERSONS OR PARTNERSHIPS
111 Provisions relating to contributories in case of company limited by
guarantee or a non-profit company
(I) In the case of a liquidation by the Court or of a creditors' voluntary
liquidation by resolution of a company incorporated in terms of the Companies Act
[Chapter 24:31], limited by guarantee, the liquidator must, if necessary, settle a list of
contributories.
(2) A former member of a company limited by guarantee is not liable to
contribute to its assets unless at the commencement of the liquidation there is unsatisfied
debt or liability of the company contracted before he or she ceased to be a member.
(3) As soon as the liquidator has settled the list of contributories, he or she must
send a liquidator's notice to every person included in the list, stating that fact and the
extent of the liability of that person.
(4) Any person who objects to his or her inclusion in the list, is entitled within
14 days from the date of the notice to lodge an objection with the liquidator in the form
of an affidavit giving full reasons why he or she should not be included in the list.
(5) The liquidator may accept the objection and amend the list of contributories
or may reject such objection and, if the objection is rejected, must notify the person in
question accordingly by standard notice.
(6) A person whose objection has been rejected, may within 14 days from the
date of the notice provided for in subsection (3), apply to the Master for a ruling as to
whether his or her name should be included in the list, and the Master must direct the
liquidator to include his or her name or to exclude it from the said list.
(7) A liquidator must recover from the contributories such proportion of their
liability as may be required from time to time, taking into consideration the probability
that some of the contributories may partly or wholly fail to pay the amount demanded
from them.
(8) In the event of the death of any contributory or the insolvency of his or
her estate, the liquidator may recover the contribution from the contributor's estate in
question.
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