- 4 Marks
Question
a) State FOUR persons who are incompetent to be appointed liquidators. (4 marks)
Answer
Section 252 of ACT 179 lists out the following persons as being incompetent to be liquidators:
- An infant.
- A person found by a court of competent jurisdiction to be a person of unsound mind.
- A body corporate.
- A person convicted on indictment, whether in the Republic or elsewhere, of an offence involving fraud or dishonesty or of an offence in connection with the promotion or management of a body corporate.
- An undischarged bankrupt or any other person subject to insolvency proceedings under the Insolvency Act, 1962 ACT 153.
- A director of a company is not qualified for appointment as a liquidator of that company.
- An auditor of a company shall not be appointed as liquidator in a private liquidation unless on the appointment, a special resolution is duly passed dispensing with the auditing of the accounts of that auditor.
(1 point each for 4 marks)
- Tags: Company Law, Incompetency, Liquidators
- Level: Level 1
- Uploader: Dotse