Section 559 CAMA 2020

Section 559 Companies and Allied Matters Act is about Information where receiver or manager appointed in respect of a floating charge. It is under Chapter 19 (Receivers and managers, appointment of receivers and managers) of the Act.

(1) Where a receiver or manager of the whole or substantially the whole of the property of a company (in this section and in section 560 of this Act referred to as “the receiver”) has been appointed on behalf of the holders of any debentures of the company secured by a floating charge, then,subject to the provisions of this section and of section 560 of this Act —

(a) the receiver shall immediately send notice to the company of hisappointment and the terms ;

(b) there shall, within 14 days after receipt of the notice, or such longer period as may be allowed by the Court or by the receiver, be made out and submitted to the receiver in accordance with section 560 of this Act, a statement in the prescribed form as to the affairs of the company ; and

(c) the receiver shall, within two months after receipt of the statements,send to—

(i) the Commission or Court a copy of the statement and of any comments he sees fit to make thereon and in the case of the Commission also a summary of the statement and of his comments, if any,

(ii) the company a copy of any comments or if he does not think fit tomake any comment, a notice to that effect, and

(iii) any trustees for the debenture holders on whose behalf he has been appointed and, so far as he is aware of their addresses, to all such debenture holders, a copy of the said summary.

(2) The receiver shall within two months, or such longer period as the Court may allow after the expiration of the period of 12 months from the date of his appointment and of every subsequent period of 12 months, and within two months, or such longer period as the Court may allow after he ceases to act as receiver or manager of the property of the company, send to the Commission, any trustee for the debenture holders of the company on whosebehalf he was appointed, the company and (if he is aware of their addresses)all debenture holders (if he is aware of their addresses), an abstract in theprescribed form showing his receipts and payments during that period of 12months, or, where he ceases to act, during the period from the end of theperiod to which the last preceding abstract relates up to the date of his soceasing, and the aggregate amounts of his receipts and payments during allpreceding periods since his appointment.

(3) Where the receiver is appointed under the powers contained in any instrument, this section has effect with the —

(a) omission of the references to the Court in subsection (1) ; and

(b) substitution for the references to the Court in subsection (2), of references to the Commission and in any other case references to the Court shall be taken as referring to the Court by which the receiver was appointed.

(4) Subsection (1) does not apply in relation to the appointment of a receiver or manager to act with an existing receiver or manager or in place ofa receiver or manager dying or ceasing to act, except that, where that subsection applies to a receiver or manager who dies or ceases to act before it has been fully complied with, the references in paragraphs (b) and (c) to the receiver shall, subject to subsection (5), include references to his successor and to any continuing receiver or manager and nothing in this subsection shall be taken as limiting the meaning of the expression “the receiver” where used in, or in relation to, subsection (2).

(5) This section and section 560 of this Act, where the company is being wound up, apply notwithstanding that the receiver or manager and the liquidator are the same person.

(6) Nothing in subsection (2) shall be taken to prejudice the duty of the receiver to render proper accounts of his receipts and payments to the persons to whom, and at the times at which, he may be required to do so apart from that sub-section.

(7) If the receiver makes default in complying with the requirements of this section, he is liable to a penalty for every day during which the default continues in such amount as the Commission shall specify in its regulations.