PDFBuy Digital Copy — $5.00 Arrangement of Sections Section Short title§ 1 Interpretation§ 2 Application of this Act§ 3 Director of Insolvency§ 4 Official Receiver§ 5 Office and name of Official Receiver§ 6 Vacation of office of Official Receiver§ 7 Register of insolvency practitioners§ 8 Conduct and performance of insolvency practitioners§ 9 Director may make application to Court§ 10 Disclosure to and consultation with, Director§ 11 Other registers to be kept by Director§ 12 Meaning of a company in reorganization§ 13 Objective of company reorganization§ 14 Administrator to be an officer of the Court§ 15 Appointment of an administrator§ 16 Conditions for making reorganization order§ 17 Application for a reorganization order§ 18 Powers of Court§ 19 Application by holder of qualifying security interest§ 20 Intervention by holder of a qualifying security interest§ 21 Application for reorganization order where company in liquidation§ 22 Effects of receivership§ 23 Dismissal of pending winding-up petition§ 24 Dismissal of receiver§ 25 Moratorium on insolvency proceedings§ 26 Moratorium on other legal processes§ 27 Interim moratorium§ 28 Publicity§ 29 Announcement of administrator’s appointment§ 30 Statement of company’s affairs§ 31 Prescribed period for submission of statement of affairs§ 32 Administrator’s proposals§ 33 Creditors’ meeting§ 34 Requirement for initial creditors’ meeting§ 35 Business and result of initial creditors’ meeting§ 36 Substantial revision after approval§ 37 Failure to obtain approval of administrator’s proposals§ 38 Further creditors’ meetings§ 39 Creditors’ committee§ 40 Correspondence instead of creditors’ meeting§ 41 General powers of administrator§ 42 Distribution§ 43 General duties of administrator§ 44 Administrator as agent of the company§ 45 Secured property: qualifying security interest§ 46 Secured property: non-qualifying security interest§ 47 Protection for secured or preferential creditor§ 48 Challenge to administrator’s conduct of company§ 49 Misfeasance§ 50 Automatic end of company reorganization§ 51 Court ending company reorganization on application of administrator§ 52 Termination of company reorganization where objective achieved§ 53 Court order ending company reorganization on application of creditor§ 54 Public interest winding-up of company in company reorganization§ 55 Moving from company reorganization to creditors’ voluntary winding-up§ 56 Moving from company reorganization to dissolution§ 57 Discharge of company reorganization order where company reorganization ends§ 58 Notice to Registrar of Companies where company reorganization ends§ 59 Resignation of administrator§ 60 Removal of administrator from office§ 61 Administrator ceasing to be qualified§ 62 Vacancy in office of administrator§ 63 Vacation of office: discharge from liability§ 64 Vacation of office: charges and liabilities§ 65 Multiple appointments§ 66 Joint administrators§ 67 Concurrent administrators§ 68 Joint or concurrent administrators§ 69 Presumption of validity§ 70 Majority decision of directors§ 71 Extension of time limit§ 72 Variation of period§ 73 Extended period§ 74 Appointment of receiver§ 75 Qualification of receiver§ 76 Appointment of receiver under instrument§ 77 Appointment of receiver by Court§ 78 Notice of appointment of receiver§ 79 Notice of receivership§ 80 Vacancy in office of receiver§ 81 Powers of receiver§ 82 Execution of documents§ 83 Obligations of company and directors§ 84 Validity of act of receiver§ 85 Consent of mortgagee to sale of property§ 86 General duties of receiver§ 87 First report by receiver§ 88 Further report by receiver§ 89 Extension of time for preparing reports§ 90 Persons entitled to receive reports§ 91 Duty to notify breaches of Acts§ 92 Notice of end of receivership§ 93 Preferential claims§ 94 Powers of receiver on liquidation§ 95 Liability of receiver§ 96 Relief from liability§ 97 Court supervision of receiver§ 98 Court may terminate or limit receivership§ 99 Order to enforce receiver’s duties§ 100 Order for protection of property in receivership§ 101 Refusal to provide essential service§ 102 Winding-up of other bodies corporate§ 103 Winding-up of foreign companies§ 104 Modes of winding-up§ 105 Commencement of winding-up§ 106 Petition for winding-up§ 107 Preliminary costs§ 108 Power of Court on petition for winding-up§ 109 Proceedings against company§ 110 Property of company§ 111 Lodging and service of order§ 112 Appointment of provisional liquidator§ 113 Custody and vesting of company’s property§ 114 Statement of company’s affairs§ 115 Liquidator’s report§ 116 Principal duty of liquidator§ 117 Liquidator not required to act in certain cases§ 118 Other duties of liquidator§ 119 Powers of liquidator§ 120 Power of liquidator relating to documents and information§ 121 Document in possession of receiver§ 122 Document creating charge over property§ 123 Power of Court§ 124 Release of liquidator and dissolution of company§ 125 Liquidation committee in winding-up by Court§ 126 List of members§ 127 Liabilities of present and past shareholders§ 128 Death of member§ 129 Bankruptcy of member§ 130 Payment of debt due by contributory§ 131 Special manager§ 132 Receiver for secured creditors§ 133 Creditor’s claim§ 134 Power of arrest§ 135 Foreign companies§ 136 Pooling of assets of related companies§ 137 Guidelines for orders§ 138 Duty to identify and deliver property§ 139 Refusal to supply essential service§ 140 Circumstances for voluntary winding-up§ 141 Effect of voluntary winding-up§ 142 Declaration of solvency§ 143 Liquidator in voluntary winding-up§ 144 Insolvency of company§ 145 Creditor’s meeting§ 146 Liquidator in creditors’ winding-up§ 147 Liquidation committee in voluntary winding-up§ 148 Property and proceedings§ 149 Distribution of property§ 150 Appointment and removal of liquidator§ 151 Powers and duties of liquidator in voluntary winding-up§ 152 Sale of company’s property§ 153 Annual meeting of shareholders and creditors§ 154 Final meeting and dissolution in voluntary winding-up§ 155 Arrangement binding on creditors§ 156 Costs§ 157 Effect of liquidation§ 158 Application to Court§ 159 Powers of Official Receiver§ 160 Notice of appointment and address of liquidator§ 161 Payment into bank by liquidator§ 162 Liquidator’s accounts§ 163 Default by liquidator§ 164 Notification of liquidation§ 165 Books of company§ 166 Investment of surplus funds§ 167 Unclaimed assets§ 168 Expenses of winding-up where assets are insufficient§ 169 Resolution at adjourned meeting of creditors and members§ 170 Meeting to ascertain wishes of creditors or members§ 171 Completion of liquidation§ 172 Court may terminate liquidation§ 173 Right of creditor to complete execution, distraint or attachment§ 174 Duties of sheriff in execution process§ 175 Consent to appoint and validity of act of liquidator§ 176 Vacancy in the office of liquidator§ 177 Court supervision of liquidation§ 178 Order to enforce or relieve liquidator from compliance§ 179 Prohibition order§ 180 Meaning of “failure to comply”§ 181 Meaning of “inability to pay debts”§ 182 Evidence of inability to pay debts§ 183 Statutory demand§ 184 Court may set aside statutory demand§ 185 Fraudulent trading§ 186 Wrongful trading§ 187 Adjudication§ 188 Creditor’s petition§ 189 Statutory demand§ 190 Overstatement in a statutory demand§ 191 Failure to comply with statutory demand§ 192 Adjournment of petition or refusal to adjudicate§ 193 Judgment under appeal§ 194 Underlying debt not determined§ 195 Court’s power where more than one petition or more than one debtor§ 196 Order on disposition of property or proposal§ 197 Substitution of creditor§ 198 Debtor’s petition§ 199 Order on debtor’s petition§ 200 Report of the Director§ 201 Debtors’ joint petition§ 202 Summary administration§ 203 Appointment of Official Receiver as interim receiver§ 204 Date of adjudication and disqualification of bankrupt§ 205 Procedure following adjudication§ 206 Stay of proceedings§ 207 Execution process after adjudication§ 208 Statement of affairs§ 209 Meeting of creditors§ 210 Appointment of expert and inspection of documents§ 211 Bankrupt’s death after adjudication§ 212 Bankrupt’s estate§ 213 Vesting in Official Receiver§ 214 Property acquired after adjudication§ 215 Transaction in good faith and for value§ 216 Rights under execution or attachment§ 217 Duties of sheriff as to seized goods§ 218 Bona fide transaction without notice§ 219 Immovable property§ 220 Transfer of shares and other securities§ 221 Second bankruptcy§ 222 General duties of bankrupt§ 223 Financial information§ 224 Contribution to payment of debts§ 225 Bankrupt entering business§ 226 Search and seizure of property§ 227 Vacation of property§ 228 Right to inspect documents§ 229 Recovery, release or discharge of property§ 230 Defeating beneficial interest§ 231 Bank accounts§ 232 Allowance to bankrupt§ 233 Examination of bankrupt and others§ 234 Public examination of bankrupt§ 235 Documents and other records§ 236 Official Receiver’s powers§ 237 Bank account and investment§ 238 Official Receiver‘s discretion§ 239 Automatic discharge§ 240 Application for discharge§ 241 Official Receiver’s report§ 242 Notice of opposition to discharge§ 243 Grant or refusal of discharge§ 244 Engaging in business after discharge§ 245 Reversal of order of discharge§ 246 Powers of the Court where conditions of discharge too onerous§ 247 Release from debts§ 248 Other effects of discharge§ 249 Annulment§ 250 Effects of annulment§ 251 Interim order of Court§ 252 Application for interim order§ 253 Effect of application§ 254 Cases in which interim order can be made§ 255 Nominee’s report on debtor’s proposal§ 256 Debtor’s proposal and nominee’s report§ 257 Summoning of creditors’ meeting§ 258 Decision of creditors’ meeting§ 259 Report of decisions to Court§ 260 Effect of approval§ 261 Additional effect on undischarged bankrupt§ 262 Challenge of creditors’ meeting’s decision§ 263 False representations§ 264 Prosecution of delinquent debtors§ 265 Arrangements coming to an end prematurely§ 266 Implementation and supervision of approved voluntary arrangement§ 267 Availability of fast-track voluntary arrangement§ 268 Decision§ 269 Report of Official Receiver to Court on proposed voluntary arrangement§ 270 Approval of voluntary arrangement§ 271 Implementation of a voluntary arrangement approved by a creditors’ meeting§ 272 Revocation§ 273 Offences§ 274 Definition of debtor§ 275 Provable debt and proof of debt§ 276 Procedure for proving debts§ 277 Uncertain proof§ 278 Proof of debt payable six months or more after adjudication or winding-up§ 279 Mutual credit and set-off§ 280 Interest on claims§ 281 Voidable preference§ 282 Voidable security interest§ 283 Security interest or security for new consideration§ 284 Presumption that debtor unable to pay due debts§ 285 Security for unpaid purchase price given after sale of property§ 286 Appropriation of payment by debtor to security interest holder§ 287 Alienation of property with intent to defraud a creditor§ 288 Voidable gift§ 289 Procedure for setting aside voidable transaction§ 290 Court may order re-transfer or payment§ 291 Limits on recovery§ 292 Transaction with debtor for inadequate or excessive consideration§ 293 Court may order recipient to pay value§ 294 Court’s power in relation to debtor’s contribution§ 295 Use of repayment of debtor’s contribution to property§ 296 Preferential claims§ 297 Priority of payments for distribution of debtor’s assets§ 298 Right of personal creditors of partners§ 299 Right of creditor who has proved debt late§ 300 Final dividend§ 301 Definition of undistributed money§ 302 Undistributed money§ 303 Application of general fund§ 304 Disqualification from appointment§ 305 Control of liquidator by Official Receiver§ 306 Remuneration of insolvency practitioner§ 307 Acting as insolvency practitioner§ 308 Qualifications of an insolvency practitioner§ 309 Authority and further qualification to act as insolvency practitioner§ 310 Recognition of bodies or persons and qualifications§ 311 Application to competent authority§ 312 Grant or refusal of application§ 313 Notice of authorization§ 314 Written representations where application refused§ 315 Purpose of this Part§ 316 Scope of application§ 317 Interpretation§ 318 International obligations of Malawi§ 319 Competent court§ 320 Authorization of insolvency practitioner to act in a foreign state§ 321 Public policy exception§ 322 Additional assistance under other laws§ 323 Factors to consider in the interpretation of this Part§ 324 Right of direct access§ 325 Limited jurisdiction§ 326 Application by a foreign representative to commence proceedings§ 327 Participation of a foreign representative in a proceeding under this Act§ 328 Access of foreign creditors to a proceeding under this Act§ 329 Notification to foreign creditors of a proceeding under this Act§ 330 Application for recognition of a foreign proceeding§ 331 Presumptions concerning recognition§ 332 Decision to recognize a foreign proceeding§ 333 Subsequent information§ 334 Provisional relief that may be granted upon application for recognition of a foreign proceeding§ 335 Effects of recognition of a foreign main proceeding§ 336 Relief that may be granted upon recognition of a foreign proceeding§ 337 Protection of creditors and other interested persons§ 338 Actions to avoid acts detrimental to creditors§ 339 Intervention by a foreign representative in proceedings in Malawi§ 340 Cooperation between the Court and foreign courts or foreign representatives§ 341 Cooperation between insolvency practitioner and foreign courts or foreign representatives§ 342 Forms of cooperation§ 343 Commencement of proceedings under this Act after recognition of foreign main proceeding§ 344 Coordination of a proceeding under this Act and a foreign proceeding§ 345 Coordination of more than one foreign proceeding§ 346 Presumption of insolvency based on recognition of a foreign main proceeding§ 347 Rule of payment in concurrent proceedings§ 348 General offence and penalty§ 349 Administrative penalties§ 350 Regulations§ 351 Rules of Court§ 352 Maximum penalty for offences under subsidiary legislation§ 353 Repeals and savings Cap. 11:01§ 354 Transitional provisions§ 355 CHAPTER 11:01INSOLVENCY ARRANGEMENT OF SECTIONS SECTION PART IPRELIMINARY 1. Short title 2. Interpretation 3. Application of this Act PART IIADMINISTRATION OF THIS ACT 4. Director of Insolvency 5. Official Receiver 6.… Members-only content Continue reading this exclusive content by subscribing to one of our membership plans. Subscribe NowAlready a Member? Log In