Section 588 CAMA 2020
Section 588 Companies and Allied Matters Act is about Powers of liquidator. It is under Chapter 21 (Winding-up by the court jurisdiction) of the Act.
(1) The liquidator in a winding-up by the Court shall have power,with the sanction either of the court or of the committee of inspection to—
(a) bring or defend any action or other legal proceeding in the name andon behalf of the company ;
(b) carry on the business of the company so far as may be necessary for its beneficial winding-up ;
(c) appoint a legal practitioner or any other relevant professional to assist him in the performance of his duties ;
(d) pay any classes of creditors in full ;
(e) make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claim,present or future, certain or contingent, ascertained or sounding only indamages against the company, or whereby the company may be rendered liable ; and
(f ) compromise all calls and liabilities to calls, debts and liabilities capable of resulting in debts, and all claims, present or future, certain or contingent,ascertained or sounding only in damages, subsisting or supposed to subsist between the company and a contributory or alleged contributory or other debtor or person apprehending liability to the company, and all questions in any way relating to or affecting the assets or the winding-up of the company, on such terms as may be agreed, and take any security for the discharge of any suchcall, debt, liability or claim and give a complete discharge in respect of it.
(2) The liquidator in winding-up by the Court shall have power to—
(a) sell the property of the company of whatever nature by public auction or private contract, with power to transfer the whole thereof to any person or company or to sell the same in parcels ;
(b) do all acts and to execute, in the name and on behalf of the company,all deeds, receipts and other documents, and for that purpose to use, whennecessary, the company’s seal (where the company has a seal) ;
(c) prove, rank and claim in the bankruptcy, insolvency or sequestration of any contributory for any balance against his estate, and to receive dividends in the bankruptcy, insolvency or sequestration in respect of that balance as a separate debt due from the bankrupt or insolvent, and ratably with the other separate creditors ;
(d) draw, accept, make and indorse any bill of exchange or promissory note in the name and on behalf of the company with the same effect with respect to the liability of the company as if the bill or note had been drawn,accepted, made or indorsed by or on behalf of the company in the course of its business ;
(e) raise on the security of the assets of the company any money requisite ;
(f ) take out in his official name, letters of administration to any deceased contributory, and to do in his official name any other act necessary for obtaining payment of any money due from a contributory or his estate which cannot be conveniently done in the name of the company, and in all such cases the money due shall, for the purpose of enabling the liquidator to take out the letters of administration or recover the money, be deemed tobe due to the liquidator himself ;
(g) appoint an agent to do any business which the liquidator is unable todo himself ; and
(h) do all other things as may be necessary for winding-up the affairs of the company and distributing its assets.
(3) The exercise by the liquidator in a winding-up by the Court of the powers conferred by this section shall be subject to the control of the Court,and any creditor or contributory may apply to the Court with respect to any exercise or proposed exercise of any of those powers
