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Companies Act, 1973 (Act No. 61 of 1973)

Chapter XIV: Winding-up of Companies

General Provisions Affecting all Windings-up

365. Offences in securing nomination as liquidator and restriction on voting at meetings

 

 

1) Any person who gives or agrees or offers to give to any member, creditor or contributory of a company any reward with a view to securing his own nomination or appointment or to securing or preventing the nomination or appointment of any person as the company's liquidator, shall be guilty of an offence.

 

2)
a) The provisions of the law relating to insolvency in respect of voting, the manner of voting and voting by an agent at meetings of creditors, shall apply mutatis mutandis to any meeting referred to in sections 351 and 364: Provided that in any winding-up by the court a director or former director of a company shall have no voting right in respect of the nomination of a liquidator on the ground of his loan account with the company or claims for arrear salary, travelling expenses or allowances due by the company or claims paid by such director or former director on behalf of the company.
b) The provisions of paragraph (a) shall mutatis mutandis apply to a person to whom a right contemplated in the said paragraph has been ceded.