Commonwealth Numbered Acts

COMPANIES ACT 1981 No. 89 of 1981 - SECT 417

417. (1) Subject to this section, a person shall not consent to be appointed,
and shall not act, as liquidator of a company unless he is-

   (a)  a registered liquidator; or

   (b)  registered as a liquidator of that company under sub-section 20 (3).

(2) Subject to this section, a person shall not, except with the leave of the
Court, seek to be appointed, or act, as liquidator of a company-

   (a)  if the person, or a corporation in which the person is a substantial
        shareholder for the purposes of Division 4 of Part IV or the
        provisions of the law of a participating State or participating
        Territory that correspond with that Division, is indebted in an amount
        exceeding $5,000 to the company or to a related corporation;

   (b)  if he is, otherwise than in his capacity as liquidator, a creditor of
        the company or of a related corporation in an amount exceeding $5,000;
        or

   (c)  if-

        (i)    he is an officer of the company (otherwise than by reason of
               being a liquidator of the company or of a related corporation);

(ia) he is an officer of any corporation that is a mortgagee of property of
the company;

        (ii)   he is an auditor of the company;

        (iii)  he is a partner or employee of an auditor of the company;

        (iv)   he is a partner, employer or employee of an officer of the
               company; or

        (v)    he is a partner or employee of an employee of an officer of the
               company.

(3) The reference in paragraph (2) (a) to indebtedness to a corporation does
not, in relation to indebtedness of a natural person, include a reference to
indebtedness of that person to a corporation that is a prescribed corporation
for the purposes of Division 4 of Part VI where-

   (a)  the indebtedness arose as a result of a loan made to that person by
        the corporation in the ordinary course of its ordinary business; and

   (b)  the amount of that loan was used by that person to pay the whole or
        part of the purchase price of premises that are used by that person as
        his principal place of residence.

(4) Sub-section (1) and paragraph (2) (c) do not apply to a members' voluntary
winding up of a proprietary company that is an exempt proprietary company or
is a subsidiary of a public company.

(5) Paragraph (2) (c) does not apply to a creditors' voluntary winding up if,
by a resolution carried by a majority of the creditors in number and value
present and voting , either in person or by proxy, at a meeting of which 14
days' notice has been given to every creditor stating the purpose of the
meeting, it is determined that that paragraph shall not so apply.

(6) For the purposes of sub-section (2), a person shall be deemed to be an
officer or auditor of a company if-

   (a)  he is an officer or auditor of a related corporation; or

   (b)  except where the Commission, if it thinks fit in the circumstances of
        the case, directs that this paragraph shall not apply in relation to
        him-he has, at any time within the immediately preceding period of 2
        years, been an officer, auditor or promoter of the company or of a
        related corporation.

(7) A person shall not consent to be appointed, and shall not act, as
liquidator of a company if he is an insolvent under administration.

(8) A person shall not consent to be appointed, and shall not act, as
liquidator of a company that is being wound up by order of the Court unless he
is an official liquidator.

(9) A person shall not be appointed as liquidator of a company unless he has,
before his appointment, consented in writing to act as liquidator of the
company.

Penalty: $1,000 or imprisonment for 3 months, or both.