Section 656 CAMA 2020
Section 656 Companies and Allied Matters Act is about Application of bankruptcy rules in certain cases. It is under Chapter 24 (Provisions applicable to every mode of winding-up) of the Act.
In the winding-up of an insolvent company registered in Nigeria,the same rules shall prevail and be observed with regard to the respective rights of secured and unsecured creditors and to debts provable and to the valuation of annuities and future contingent liabilities as are in force for the time being under the law of bankruptcy in Nigeria with respect to the estates of persons adjudged bankrupt, and all persons who in any such case would be entitled to prove for and receive dividends out of the assets of the company may come in under the winding-up and make such claims against the company as they respectively are entitled to by virtue of this section :
Provided that nothing in this section shall affect the power of any secured creditor to realise or otherwise deal with his security during the winding-up of an insolvent company registered in Nigeria.
