Section 522 CAMA 2020

Section 522 Companies and Allied Matters Act is about Moving from administration to dissolution. It is under Chapter 18 (Administration of companies: nature of administration) of the Act.

(1) If the administrator of a company thinks that the company has no property which might permit distribution to its creditors, he shall send a notice to that effect to the Commission.

(2) The Court may on the application of the administrator of a company,discontinue the application of subsection (1) in respect of the company.

(3) On receipt of a notice under subsection (1) the Commission shall register the notice.

(4) On the registration of a notice in respect of a company under subsection(3) the appointment of an administrator of the company ceases to have effect.

(5) If an administrator sends a notice under subsection (1), he shall, assoon as is reasonably practicable—

(a) file a copy of the notice with the Court ; and

(b) send a copy of the notice to each creditor of whose claim and address he is aware.

(6) At the end of three months beginning with the date of registration ofa notice in respect of a company under subsection (3) the company is deemed to be dissolved.

(7) On an application in respect of a company by the administrator or another interested person, the Court may—

(a) extend the period specified in subsection (6) ;

(b) suspend that period ; or

(c) discontinue the application of subsection (6).

(8) Where an order is made under subsection (7) in respect of a company the administrator shall, as soon as is reasonably practicable, notify the Commission.

(9) An administrator commits an offence if he fails, without reasonable excuse, to comply with subsection (5).