Section 511 CAMA 2020
Section 511 Companies and Allied Matters Act is about Challenge to administrator’s conduct of company. It is under Chapter 18 (Administration of companies: nature of administration) of the Act.
(1) A creditor or member of a company in administration may apply to the Court claiming that the administrator—
(a) is acting or has acted so unfairly as to harm the interests of the applicant, whether alone or in common with some or all other members or creditors ; or
(b) proposes to act in a way which would unfairly harm the interests of the applicant, whether alone or in common with some or all other members or creditors.
(2) A creditor or member of a company in administration may apply to the Court claiming that the administrator is not performing his functions as quickly or as efficiently as is reasonably practicable.
(3) The Court may—
(a) grant a relief ;
(b) dismiss the application ;
(c) adjourn the hearing conditionally or unconditionally ;
(d) make an interim order ; or
(4) In particular, an order under this section may—
(a) regulate the administrator’s exercise of his functions ;
(b) require the administrator to do or not do a specified thing ;
(c) require a creditors’ meeting to be held for a specified purpose ;
(d) provide for the appointment of an administrator to cease to have effect ; or
(e) make consequential provision.
(5) An order may be made on a claim under subsection (1) whether ornot the action complained of—
(a) is within the administrator’s powers under Tenth Schedule to thisAct ; or
(b) was taken in reliance on an order under section 505 or 506 of this Act.
(6) An order shall not be made under this section if it would impede or prevent the implementation of —
(a) a voluntary arrangement approved under Chapter 17 of Part B ;
(b) a proposal for a scheme of arrangement and compromise or reconstruction to be sanctioned under relevant Parts of this Act ;
(c) a proposal for a cross-border merger within the meaning of relevant legislation, including but not limited to the Investments and Securities Act ; or
(d) proposals or a revision approved under section 491 or 492 of this Act more than 28 days before the day on which the application for the order under this section is made.
