Section 591 CAMA 2020

Section 591 Companies and Allied Matters Act is about Payments by liquidator into companies’ liquidation account. It is under Chapter 21 (Winding-up by the court jurisdiction) of the Act.

(1) Every liquidator of a company being wound up by the Court shall, in such manner and at such times as the Commission directs, pay moneys received by him into the public fund of the Federation kept by the Commission for the purposes of this Act known as “the Companies Liquidation Account”,and the Accountant-General of the Federation shall furnish him with a certificate of receipt for the money so paid.

(2) If the Committee of Inspection satisfies the Commission that for the purpose of carrying on the business of the company or of obtaining advances, or for any other reason, it is for the advantage of the creditors or contributories that the liquidator should have an account with any bank, the Commission shall, on the application of the Committee of Inspection, authorise the liquidator to make his payments into and out of such bank in Nigeria as the committee may select,and thereupon those payments shall be made in the prescribed manner.

(3) If the liquidator of a company being wound up, at any time retains for more than 10 days an amount in excess of either N50,000 or such other amount as the Commission may approve, and fails to satisfy the Commission as to the need for the retention of that amount beyond that time, the liquidator shall pay interest on the amount so retained in excess, at the rate of 20% per annum,and shall be liable to—

(a) disallowance of the whole or such part of his remuneration as theCommission deems fit ; and

(b) removal from office, and in addition, he shall be liable to pay any expenses occasioned by the retention.

(4) A liquidator of a company which is being wound up by the Court shall not pay any sums received by him as liquidator into his private banking account.