Section 509 CAMA 2020

Section 509 Companies and Allied Matters Act is about Hire-purchase property. It is under Chapter 18 (Administration of companies: nature of administration) of the Act.

(1) The Court may by order enable the administrator of a company to dispose of goods which are in the possession of the company under a hire-purchase agreement as if all the rights of the owner under the agreement were vested in the company.

(2) An order under subsection (1) may be made only—

(a) on the application of the administrator ; and

(b) where the Court considers that disposal of the goods would be likely to promote the purpose of administration in respect of the company.

(3) An order under this section is subject to the condition that there shall be applied towards discharging the sums payable under the hire-purchase agreement—

(a) the net proceeds of disposal of the goods ; and

(b) any additional money required to be added to the net proceeds so as to produce the amount determined by the Court as the net amount which would be realized on a sale of the goods at market value.

(4) An administrator who makes a successful application for an order under this section shall send a copy of the order to the Commission before the end of 14 days starting with the date of the order.

(5) An administrator commits an offence if he fails, without reasonable excuse, to comply with subsection (4).