Companies Act Section 283 — Custody of company’s properties
CHAPTER XX WINDING UP
Commercial / Corporate
Summary
Sub-section (1) covers the situation where a winding up order has been made against a company, or where a provisional liquidator has been appointed. In either case, the Company Liquidator or the provisional liquidator must, as directed by the Tribunal, immediately take into their custody or control all the property, effects, and actionable claims that the company owns or appears to own. They must also take whatever steps are necessary to protect and preserve the company's properties.
Sub-section (2) states that, regardless of what sub-section (1) says, all the property and effects of the company are considered to be in the custody of the Tribunal from the date the winding up order is made.
Sub-section (3) provides that, after a winding up order is made, the Tribunal may, upon an application by the Company Liquidator or on its own, require any contributory listed on the list of contributories, as well as any trustee, receiver, banker, agent, officer, or other employee of the company, to pay, deliver, surrender, or transfer to the Company Liquidator any money, property, or books and papers in their custody or control that the company owns or appears to own. This must be done immediately or within the time frame the Tribunal specifies.
Official Text
(1) Where a winding up order has been made or where a provisional liquidator has been appointed, the Company Liquidator or the provisional liquidator, as the case may be, shall, on the order of the Tribunal, forthwith take into his or its custody or control all the property, effects and actionable claims to which the company is or appears to be entitled to and take such steps and measures, as may be necessary, to protect and preserve the properties of the company.
(2) Notwithstanding anything contained in sub-section (1), all the property and effects of the company shall be deemed to be in the custody of the Tribunal from the date of the order for the winding up of the company.
(3) On an application by the Company Liquidator or otherwise, the Tribunal may, at any time after the making of a winding up order, require any contributory for the time being on the list of contributories, and any trustee, receiver, banker, agent, officer or other employee of the company, to pay, deliver, surrender or transfer forthwith, or within such time as the Tribunal directs, to the Company Liquidator, any money, property or books and papers in his custody or under his control to which the company is or appears to be entitled.