Section 585 CAMA 2020
Section 585 Companies and Allied Matters Act is about Appointment,remuneration and title of liquidators. It is under Chapter 21 (Winding-up by the court jurisdiction) of the Act.
(1) The Court may appoint a liquidator or liquidators for the purpose of conducting the proceedings in winding-up a company and performing such duties in reference to it as the court may impose and where there is a vacancy,the official receiver shall by virtue of his office, act as liquidator until such time as the vacancy is filled.
(2) At any time after the presentation of a petition and before the making of a winding-up order, the appointment shall be provisional and the Court making the appointment may limit and restrict the powers of the liquidator by the order appointing him.
(3) In the application of this section—
(a) if a provisional liquidator is to be appointed before the making of a winding-up order, the official receiver, or any other fit person, may be so appointed ;
(b) on the making of a winding-up order, if no liquidator is appointed, the official receiver shall by virtue of his office become the liquidator ;
(c) the official receiver in his capacity as provisional liquidator shall, andin any other case may, summon meetings of creditors and contributories of the company to be held separately for the purpose of determining whether or not an application is to be made to the court for appointing a liquidator inplace of the official receiver ; or
(d) if a person other than the official receiver is appointed liquidator, heis not capable of acting in that capacity until he has notified his appointment to the Commission and given security in the prescribed manner to the satisfaction of the Court.
(4) If more than one liquidator of a company is appointed by the Court,the Court shall declare whether anything by this Act required or authorised tobe done by a liquidator is to be done by all or any one or more of them.
(5) A liquidator appointed by the Court may resign, or, on cause shown,be removed by the Court and any vacancy in the office of a liquidator so appointed shall be filled by the Court.
(6) Where a person other than the official receiver is appointed a liquidator, he shall receive salary in an amount, or remuneration by way of percentage or otherwise, as the Court may direct and, if more than one person is appointed as a liquidator, their remuneration shall be distributed among them in such proportions as the Court directs.
(7) Where a liquidator of a company is appointed, he shall, after his individual name—
(a) if he is the official receiver, be described as “official receiver and liquidator of (add here name of the company)” ; and
(b) in any other case be described as “liquidator of (add here name of the company)”.
(8) The acts of a liquidator shall be valid notwithstanding any defects that may afterwards be discovered in his appointment or qualification.
(9) If a liquidator is appointed under this section, all the powers of the directors shall cease, except so far as the Court may by order sanction the continuance thereof.
