Section 674 CAMA 2020

Section 674 Companies and Allied Matters Act is about Power of court to assess damages against delinquent directors. It is under Chapter 24 (Provisions applicable to every mode of winding-up) of the Act.

(1) If, in the course of winding-up a company, it appears that any person who has taken part in the formation or promotion of the company, orany past or present director, manager or liquidator, or any officer of the company, has misapplied or retained or become liable or accountable for any money or property of the company, or been guilty of any misfeasance or breach of duty in relation to the company which would involve civil liability at the suit of the company, the Court may, on the application of the official receiver,liquidator, creditor or contributory, examine into the conduct of the promoter,director, liquidator or officer, and compel him to repay or restore the money or property or any part thereof respectively with interest at such rates as the Court deems just, or to contribute such sum to the assets of the company byway of compensation in respect of the misapplication, retainer, misfeasance or breach of trust as the Court deems just.

(2) The provisions of this section extend to any receiver of the property of a company, and, shall, in any case, have effect notwithstanding that the offence is one for which the offender may be criminally liable.

(3) Where an order for payment of money is made under this section,the order is deemed to be a final judgment of the Court.