Commonwealth Numbered Acts

COMPANIES ACT 1981 No. 89 of 1981 - SECT 342

342. (1) Subject to sub-section (2), within 2 months after the expiration of
the period of 6 months commencing on the date of his appointment as official
manager and of each subsequent period of 6 months, or, if the Commission, at
any time before the expiration of any such period, requires or permits him to
do so in respect of a lesser period specified by the Commission, within 2
months after the expiration of the period so specified, the official manager
of a company shall-

   (a)  prepare a statement showing the assets and liabilities of the company
        as at the last day of the period and a report containing such other
        information as he thinks necessary to enable the creditors and members
        of the company to assess the financial position of the company as at
        the last day of the period;

   (b)  convene a meeting of the creditors and members of the company to
        consider the statement and report; and

   (c)  cause the statement and report to be laid before the creditors and
        members at that meeting.

(2) Where under sub-section (1) the Commission has required or permitted the
preparation of a statement and report in respect of a period of less than 6
months, the next period of 6 months shall commence at the expiration of that
lesser period.

(3) The official manager of a company shall attach to each statement referred
to in sub-section (1)-

   (a)  a statement signed by him; and

   (b)  in the case of a company that is required by this Act to appoint a
        person to be its auditor-a statement signed by the auditor, stating in
        each case whether or not, in the opinion of the person by whom the
        statement is signed, the statement referred to in sub-section (1) is
        drawn up so as to give a true and fair view of the affairs of the
        company.

(4) The official manager of the company shall cause copies of the statement
and report referred to in this section to be kept and to be available for
inspection by any creditor or member of the company at the registered office
of the company.

(5) The official manager shall-

   (a)  give written notice to every creditor and member of the company that
        the statement referred to in sub-section (1) has been made up when
        next sending to the creditors or members any report, notice of
        meeting, notice of call or dividend relating to the company; and

   (b)  in the notice inform creditors and members of the company at what
        address, and between what hours, the statement may be inspected.

(6) Within 7 days after a meeting is held under sub-section (1), the
official manager shall lodge with the Commission a notice in the prescribed
form of the holding of the meeting and of the date on which it was held,
together with a copy of each statement and report laid before the creditors
and members at that meeting.

(7) Where the statement referred to in sub-section (1) is not accompanied by a
statement signed by a registered company auditor, the Commission may cause the
statement referred to in sub-section (1) to be audited by a registered
company auditor appointed by the Commission, and, for the purposes of the
audit, the official manager shall furnish to the auditor such books and
information as the auditor requires.

(8) The costs of an audit under sub-section (7) shall be fixed by the
Commission and are part of the costs of the official management.

(9) An official manager who fails to comply with any provision of this section
is guilty of an offence.

(10) An auditor of a company who fails to supply to the official manager at
his request a statement required by the official manager for the purposes of
compliance with sub-section (3) is guilty of an offence.