Companies Act Section 292 — Exercise and control of Company Liquidator’s powers
CHAPTER XX WINDING UP
Commercial / Corporate
Summary
Sub-section (1) states that when the Company Liquidator is managing the company's assets and distributing them among creditors, the Liquidator must follow any directions given by a resolution passed by the creditors or contributories at a general meeting, or by the advisory committee. This is subject to the overall provisions of the Act.
Sub-section (2) provides that if there is a conflict between directions given by the creditors or contributories at a general meeting and directions given by the advisory committee, the directions from the general meeting will prevail over those from the advisory committee.
Under clause (a) of sub-section (3), the Company Liquidator may call meetings of the creditors or contributories whenever the Liquidator thinks it is appropriate, in order to find out their wishes.
Under clause (b) of sub-section (3), the Liquidator must call such meetings at times directed by a resolution of the creditors or contributories, or whenever the Liquidator receives a written request to do so from creditors or contributories who hold at least one-tenth in value of the total claims or interests, as the case may be.
Sub-section (4) states that any person who is aggrieved by any act or decision of the Company Liquidator may apply to the Tribunal. The Tribunal may then confirm, reverse, or modify the act or decision complained of, and may make any further order it considers just and proper in the circumstances.
Official Text
(1) Subject to the provisions of this Act, the Company Liquidator shall, in the administration of the assets of the company and the distribution thereof among its creditors, have regard to any directions which may be given by the resolution of the creditors or contributories at any general meeting or by the advisory committee.
(2) Any directions given by the creditors or contributories at any general meeting shall, in case of conflict, be deemed to override any directions given by the advisory committee.
(3) The Company Liquidator—
(a) may summon meetings of the creditors or contributories, whenever he thinks fit, for the purpose of ascertaining their wishes; and
(b) shall summon such meetings at such times, as the creditors or contributories, as the case may be, may, by resolution, direct, or whenever requested in writing to do so by not less than one-tenth in value of the creditors or contributories, as the case may be.
(4) Any person aggrieved by any act or decision of the Company Liquidator may apply to the Tribunal, and the Tribunal may confirm, reverse or modify the act or decision complained of and make such further order as it thinks just and proper in the circumstances.