Section 444 CAMA 2020

Section 444 Companies and Allied Matters Act is about Purpose of administration. It is under Chapter 18 (Administration of companies: nature of administration) of the Act.

(1) The administrator of a company may do all such things as may be necessary for the management of the affairs, business and property of the company, and shall perform his functions with the objective of—

(a) rescuing the company, the whole or any part of its undertaking, as agoing concern ;

(b) achieving a better result for the company’s creditors as a whole than would be likely if the company were wound up, without first being in administration ; or

(2) Notwithstanding subsection (1) (b) and (c), the rescue of the company is the primary objective of the administrator in the performance of his functions,except where he is of the opinion that it is not reasonably practicable or a better result can be achieved for the company’s creditors by pursuing some other course in order of priority as specified in that subsection.

(3) Subject to subsection (5), the administrator of a company shall perform his functions in the interests of the company’s creditors as a whole.

(4) The administrator shall perform his functions with the objective specified in subsection (1) (a) unless he is of the opinion that—

(a) it is not reasonably practicable to achieve that objective ; or

(b) the objective specified in subsection (1) (b) would achieve a better result for the company’s creditors as a whole.

(5) The administrator may perform his functions with the objective specified in subsection (1) (c) only if he—

(a) is of the opinion that it is not reasonably practicable to achieve either of the objectives specified in subsection (1) (a) and (b) ; and

(b) does not unnecessarily harm the interests of the creditors of thecompany as a whole.

(6) The administrator shall, within 60 days of his appointment prepare a detailed schedule of assets and submit a copy to the person by whom he was appointed.