Liquidator banking requirement: mandatory liquidation account with tribunal-authorised exceptions and sanctions for improper retention. Section 553 requires voluntary liquidators to deposit monies received into a Scheduled Bank to the credit of a special Liquidation Account, with payments made in the prescribed manner and times; the Tribunal may authorise a different bank where it benefits creditors or the company. If a liquidator retains sums beyond the permitted amount and period without satisfactory explanation, he must pay interest and any Registrar-determined penalty, cover expenses caused by the default, and may have remuneration disallowed or be removed from office by the Tribunal.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Liquidator banking requirement: mandatory liquidation account with tribunal-authorised exceptions and sanctions for improper retention.
Section 553 requires voluntary liquidators to deposit monies received into a Scheduled Bank to the credit of a special Liquidation Account, with payments made in the prescribed manner and times; the Tribunal may authorise a different bank where it benefits creditors or the company. If a liquidator retains sums beyond the permitted amount and period without satisfactory explanation, he must pay interest and any Registrar-determined penalty, cover expenses caused by the default, and may have remuneration disallowed or be removed from office by the Tribunal.
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