Winding up of company holding realizable property

(1) Where realisable property is held by a company and an order for the winding up of the company has been made or a resolution has been passed by the company for the voluntary winding up, the functions of the liquidator or, as the case may be, any provisional liquidator shall not be exercisable in relation to– (a) property for the time being subject to a restraint order made before the relevant time; and (b) any proceeds of property realised by virtue of section 39(6) or 40(4)(b) or (5) for the time being in the hands of a receiver appointed under section 39 or 40, but there shall be payable out of the property any expenses, including the remuneration of the liquidator or provisional liquidator, properly incurred in the winding up in respect of the (2) Where, in the case of a company, an order has been made or a resolution has been passed, the powers conferred on the court by sections 39 to 41 or on a receiver appointed under section 39 or 40, shall not be exercised in relation to any realisable property held by the company in relation to which the functions of the liquidator are exercisable– (a) so as to inhibit him from exercising those functions for the purpose of distributing any property held by the company to the company’s creditors; or (b) so as to prevent the payment out of any of expenses, including the remuneration of the liquidator or any provisional liquidator, properly incurred in the winding up in respect of the property. (3) In this section“company” means a company incorporated or registered under the Companies Act; CAP. 250. “the relevant time” means– (a) where no order for the winding up of the company has been made, the time of the passing of the resolution for voluntary (b) where an order has been made and, before the presentation of the petition for the winding up of the company by the court, a resolution had been passed by the company, the time of the passing of the resolution; and (c) in any other case where an order has been made, the time of the making of the order.