Malawi
Insolvency Act
Chapter 11:01
- Published on 20 May 2016
- Commenced on 20 May 2016
- [This is the version of this document at 31 December 2017 and includes any amendments published up to 31 October 2021.]
- [Note: This version of the Act was revised and consolidated in the Fifth Revised Edition of the Laws of Malawi (L.R.O. 1/2018), by the Solicitor General and Secretary for Justice under the authority of the Revision of the Laws Act.]
Part I – Preliminary
1. Short title
This Act may be cited as the Insolvency Act.2. Interpretation
In this Act, unless the context otherwise requires—"administrator" means a person appointed under this Act to manage the affairs, business and property of a company under reorganization and where the context requires, includes reference to a former administrator;"bankrupt" means a natural person who has been adjudicated bankrupt, and includes a partnership, sole proprietorship or other body corporate which cannot be wound-up under the provisions of Part V;"company" means a company incorporated under the Companies Act and includes any other company not registered in Malawi which has its affairs dealt with under the provisions of this Act;[Cap. 46:03]"company reorganization order" means an order appointing a person as the administrator of a company;"contributory" has the meaning assigned thereto in the Companies Act;[Cap. 46:03]"correspondence" includes correspondence by telephonic or other electronic means;"Court" means the High Court of Malawi established under the Constitution;"declaration of solvency" means a declaration by or on behalf of a company that the company’s assets exceed its liabilities and that the company is able to pay its debts as they fall due;"Director" means the Director of Insolvency referred to in section 4 (1);"discharge" means—(a)in relation to a bankruptcy order, the removal of the impediment of bankruptcy; and(b)in relation to a company reorganization order, the setting aside or discontinuance of a company reorganization order by the Court;"financial institution" has the meaning ascribed thereto in the Financial Services Act;[Cap. 44:05]"financial service law" has the meaning ascribed thereto in the Financial Services Act;[Cap. 44:05]"immovable property" means land whether covered by water or not, any estate or interest in, or over, land, or arising out of, or relating to, land, and anything permanently attached to the earth, or permanently fastened to anything so attached;"inability to pay its debts" has the meaning ascribed thereto in section 182 and section 183;"insolvency practitioner" means a duly qualified natural person who is entitled to practice as such in terms of Part X;"insolvency proceeding" means a collective judicial or administrative proceeding, including an interim proceeding, pursuant to a law relating to insolvency whether personal or corporate in which the assets and affairs of a debtor are subject to control or supervision by a judicial or other authority competent to control or supervise that proceeding, for the purpose of reorganization or liquidation;"liquidator" means a liquidator appointed in terms of the provisions of this Act, and includes a provisional liquidator;"market value" means the amount which would be realized on a sale of property in the open market by a willing vendor;"Official Receiver" means the person or office designated an Official Receiver under section 5;"partnership" has the meaning ascribed thereto in the Partnership Act;[Cap. 46:04]"prohibition order" means an order made under section 100 or section 180;"qualifications" in relation to an insolvency practitioner, means those qualifications that would entitle a person to act as a qualified auditor or a licensed legal practitioner in Malawi, or such other qualifications as may be prescribed by the Minister in accordance with section 311 (1) (b);"qualifying security interest" means—(a)a valid security interest;(b)a number of valid security interests; or(c)valid security interests and other forms of security,over the whole or substantially the whole of the property of a company, partnership or sole proprietorship in terms of the provisions of the Personal Property Security Act;[Cap. 48:03]"receiver" means a receiver duly appointed under the provisions of Part IV;"Registrar of Companies" means the public officer for the time being holding the office of Registrar of Companies established by section 3 of the Companies Act, and includes a Deputy or Assistant Registrar;[Cap. 46:03]"related person", in relation to a natural person, means—(a)his parent, spouse, child, brother, or sister;(b)the parent, child, brother or sister of his spouse; or(c)a nominee or trustee of the person specified in paragraphs (a) and (b);"Rules" means the Rules promulgated in terms of this Act;"secured creditor" means a creditor with valid and enforceable security amounting to—(a)a security interest over movable property in terms of the provisions of the Personal Property Security Act; and[Cap. 48:03](b)a valid mortgage over immovable property;"statutory demand" means, in relation to—(a)a company being wound-up in terms of this Act, a statutory demand described in section 184; and(b)a bankrupt, a statutory demand as described in section 190;"the purpose of company reorganization" means an objective specified in section 14 (1).3. Application of this Act
This Act shall not apply to financial institutions unless provided otherwise in the Financial Services Act.[Cap. 44:05]Part II – Administration of this Act
4. Director of Insolvency
5. Official Receiver
6. Office and name of Official Receiver
7. Vacation of office of Official Receiver
8. Register of insolvency practitioners
9. Conduct and performance of insolvency practitioners
10. Director may make application to Court
11. Disclosure to and consultation with, Director
12. Other registers to be kept by Director
Part III – Company reorganization
13. Meaning of a company in reorganization
14. Objective of company reorganization
15. Administrator to be an officer of the Court
An administrator shall be an officer of the Court.16. Appointment of an administrator
A person may be appointed as administrator only if he is qualified to act as an insolvency practitioner in relation to the company.17. Conditions for making reorganization order
The Court shall make a company reorganization order in relation to a company only if satisfied—18. Application for a reorganization order
19. Powers of Court
20. Application by holder of qualifying security interest
This section shall apply where a company reorganization application—21. Intervention by holder of a qualifying security interest
22. Application for reorganization order where company in liquidation
23. Effects of receivership
24. Dismissal of pending winding-up petition
A petition for the winding-up of a company shall be dismissed on the making of a company reorganization order in respect of the company.25. Dismissal of receiver
26. Moratorium on insolvency proceedings
27. Moratorium on other legal processes
28. Interim moratorium
29. Publicity
30. Announcement of administrator’s appointment
31. Statement of company’s affairs
32. Prescribed period for submission of statement of affairs
33. Administrator’s proposals
34. Creditors’ meeting
35. Requirement for initial creditors' meeting
36. Business and result of initial creditors’ meeting
37. Substantial revision after approval
38. Failure to obtain approval of administrator's proposals
39. Further creditors’ meetings
The administrator shall summon a creditors’ meeting if—40. Creditors’ committee
41. Correspondence instead of creditors' meeting
42. General powers of administrator
43. Distribution
44. General duties of administrator
45. Administrator as agent of the company
In exercising his functions under this Act, an administrator shall act as the agent of the company.46. Secured property: qualifying security interest
47. Secured property: non-qualifying security interest
48. Protection for secured or preferential creditor
49. Challenge to administrator’s conduct of company
50. Misfeasance
51. Automatic end of company reorganization
52. Court ending company reorganization on application of administrator
53. Termination of company reorganization where objective achieved
54. Court order ending company reorganization on application of creditor
55. Public interest winding-up of company in company reorganization
56. Moving from company reorganization to creditors' voluntary winding-up
57. Moving from company reorganization to dissolution
58. Discharge of company reorganization order where company reorganization ends
59. Notice to Registrar of Companies where company reorganization ends
60. Resignation of administrator
61. Removal of administrator from office
The Court may order the removal of an administrator from office.62. Administrator ceasing to be qualified
63. Vacancy in office of administrator
64. Vacation of office: discharge from liability
65. Vacation of office: charges and liabilities
66. Multiple appointments
67. Joint administrators
68. Concurrent administrators
69. Joint or concurrent administrators
70. Presumption of validity
An act of the administrator shall be valid notwithstanding a defect in his appointment or qualification.71. Majority decision of directors
A reference in this Act to something done by the directors of a company includes a reference to the same thing done by a majority of the directors of a company.72. Extension of time limit
73. Variation of period
74. Extended period
Where a period is extended under section 72 or 73, a reference to the period shall be taken as a reference to the period as extended.Part IV – Receivership
75. Appointment of receiver
76. Qualification of receiver
77. Appointment of receiver under instrument
78. Appointment of receiver by Court
79. Notice of appointment of receiver
80. Notice of receivership
81. Vacancy in office of receiver
82. Powers of receiver
83. Execution of documents
84. Obligations of company and directors
85. Validity of act of receiver
86. Consent of mortgagee to sale of property
87. General duties of receiver
88. First report by receiver
89. Further report by receiver
90. Extension of time for preparing reports
A period of time within which a person is required to prepare a report under section 88 or 89 may be extended, on the application of the person, by—91. Persons entitled to receive reports
92. Duty to notify breaches of Acts
93. Notice of end of receivership
Not later than the prescribed period after a receivership ceases, the person who held office as receiver at the end of the receivership shall send or deliver to the Director and the Registrar of Companies notice in writing of the fact that the receivership has ceased.94. Preferential claims
95. Powers of receiver on liquidation
96. Liability of receiver
97. Relief from liability
98. Court supervision of receiver
99. Court may terminate or limit receivership
100. Order to enforce receiver's duties
101. Order for protection of property in receivership
The Court may, on making an order that removes, or has the effect of removing, a receiver from office, make such order as it thinks fit—102. Refusal to provide essential service
Part V – Winding-up of companies
Division I—Winding-up of other bodies corporate and foreign companies
103. Winding-up of other bodies corporate
104. Winding-up of foreign companies
Division II—Winding-up generally
105. Modes of winding-up
106. Commencement of winding-up
Division III—Winding-up by Court
107. Petition for winding-up
108. Preliminary costs
109. Power of Court on petition for winding-up
110. Proceedings against company
111. Property of company
112. Lodging and service of order
A petitioner shall, within the prescribed period after the making of a winding-up order—113. Appointment of provisional liquidator
114. Custody and vesting of company's property
115. Statement of company’s affairs
116. Liquidator’s report
117. Principal duty of liquidator
Subject to section 118, the principal duty of the liquidator shall be to act in a reasonable and efficient manner so as to—118. Liquidator not required to act in certain cases
119. Other duties of liquidator
120. Powers of liquidator
A liquidator of a company shall have power to do all or any of the following—121. Power of liquidator relating to documents and information
122. Document in possession of receiver
123. Document creating charge over property
124. Power of Court
125. Release of liquidator and dissolution of company
126. Liquidation committee in winding-up by Court
127. List of members
128. Liabilities of present and past shareholders
129. Death of member
If a member dies before or after he has been placed on the list of those liable to contribute to the assets of the company, his personal representatives shall be so liable in due course of administration and, if they make default in paying any money ordered to be paid by them, proceedings may be taken for administering the estate of the deceased members and for compelling payment there out of the money due.130. Bankruptcy of member
If a member becomes bankrupt, before or after he has been placed on the list of those liable to contribute to the assets of the company—131. Payment of debt due by contributory
132. Special manager
133. Receiver for secured creditors
Where an application is made to the Court to appoint a receiver on behalf of the secured creditors of a company which is being wound-up by the Court, the Court may grant the application on such terms as the Court thinks appropriate.134. Creditor’s claim
The Court may fix a date on or before which creditors are to prove their debts or claims, after which date they will be excluded from the benefit of any distribution made before those debts are proved.135. Power of arrest
136. Foreign companies
137. Pooling of assets of related companies
138. Guidelines for orders
139. Duty to identify and deliver property
A present or former director or employee of a company in liquidation shall—140. Refusal to supply essential service
Division IV—Voluntary winding-up
141. Circumstances for voluntary winding-up
142. Effect of voluntary winding-up
143. Declaration of solvency
144. Liquidator in voluntary winding-up
145. Insolvency of company
146. Creditor’s meeting
147. Liquidator in creditors' winding-up
148. Liquidation committee in voluntary winding-up
149. Property and proceedings
150. Distribution of property
Division V—Liquidators
151. Appointment and removal of liquidator
152. Powers and duties of liquidator in voluntary winding-up
153. Sale of company's property
154. Annual meeting of shareholders and creditors
155. Final meeting and dissolution in voluntary winding-up
156. Arrangement binding on creditors
157. Costs
All proper costs, charges and expenses of, and incidental to, a voluntary winding-up, including the remuneration of the liquidator, shall be payable out of the assets of the company in priority to all other claims.Part VI – Provisions applicable to every winding-up
158. Effect of liquidation
159. Application to Court
160. Powers of Official Receiver
161. Notice of appointment and address of liquidator
162. Payment into bank by liquidator
163. Liquidator’s accounts
164. Default by liquidator
165. Notification of liquidation
Where a company is being wound-up, every invoice, order for goods or business letter issued by or on behalf of the company, a liquidator of the company or a receiver or manager of the property of the company, being a document on or in which the name of the company appears, shall have the words "in liquidation" added after the name of the company where it first appears.166. Books of company
167. Investment of surplus funds
168. Unclaimed assets
169. Expenses of winding-up where assets are insufficient
170. Resolution at adjourned meeting of creditors and members
Subject to section 146 (9), where a resolution is passed at an adjourned meeting of creditors or members of a company, the resolution shall for all purposes be treated as having been passed on the date on which it was in fact passed and not on any earlier date.171. Meeting to ascertain wishes of creditors or members
172. Completion of liquidation
The liquidation of a company shall be completed when the liquidator—173. Court may terminate liquidation
174. Right of creditor to complete execution, distraint or attachment
175. Duties of sheriff in execution process
176. Consent to appoint and validity of act of liquidator
177. Vacancy in the office of liquidator
178. Court supervision of liquidation
179. Order to enforce or relieve liquidator from compliance
180. Prohibition order
181. Meaning of "failure to comply"
In sections 178, 179 and 180, "failure to comply" means a failure of a liquidator to comply with relevant duty arising—182. Meaning of “inability to pay debts”
183. Evidence of inability to pay debts
184. Statutory demand
A statutory demand under this Part shall—185. Court may set aside statutory demand
186. Fraudulent trading
187. Wrongful trading
Part VII – Bankruptcy and alternatives
Division I—Bankruptcy process
188. Adjudication
189. Creditor’s petition
190. Statutory demand
191. Overstatement in a statutory demand
192. Failure to comply with statutory demand
193. Adjournment of petition or refusal to adjudicate
194. Judgment under appeal
Where the creditor’s petition for a bankruptcy order relies on the ground that the debtor failed to comply with a statutory demand, and the debtor has appealed against the judgment or order underlying the statutory demand or the judgment for non-payment of trust money, as the case may be, and the appeal is still to be determined, the Court may—195. Underlying debt not determined
196. Court’s power where more than one petition or more than one debtor
197. Order on disposition of property or proposal
198. Substitution of creditor
199. Debtor’s petition
200. Order on debtor’s petition
201. Report of the Director
202. Debtors’ joint petition
203. Summary administration
Division II—Interim receiver
204. Appointment of Official Receiver as interim receiver
Division III—Effect of adjudication
205. Date of adjudication and disqualification of bankrupt
206. Procedure following adjudication
207. Stay of proceedings
208. Execution process after adjudication
209. Statement of affairs
210. Meeting of creditors
211. Appointment of expert and inspection of documents
212. Bankrupt’s death after adjudication
Where a bankrupt dies after adjudication, the bankruptcy shall continue in all respects as if the bankrupt were alive.Division IV—Bankrupt's estate
213. Bankrupt’s estate
214. Vesting in Official Receiver
215. Property acquired after adjudication
Subject to section 216, between the commencement of the bankruptcy and the discharge of the bankrupt—216. Transaction in good faith and for value
217. Rights under execution or attachment
218. Duties of sheriff as to seized goods
219. Bona fide transaction without notice
220. Immovable property
221. Transfer of shares and other securities
222. Second bankruptcy
Division V—Duties of bankrupt
223. General duties of bankrupt
224. Financial information
Division VI—Control over bankrupt
225. Contribution to payment of debts
226. Bankrupt entering business
227. Search and seizure of property
228. Vacation of property
Notwithstanding any other written law, the Official Receiver may require a bankrupt and any of his relatives to vacate any land or building that is part of the property vested in the Official Receiver under the bankruptcy, and the bankrupt and his relatives shall comply with the request.229. Right to inspect documents
230. Recovery, release or discharge of property
Subject to sections 215 and 216, after adjudication, a bankrupt, and any person other than the Official Receiver, who claims through or under the bankrupt, shall not be empowered to—231. Defeating beneficial interest
232. Bank accounts
233. Allowance to bankrupt
234. Examination of bankrupt and others
235. Public examination of bankrupt
236. Documents and other records
Division VII—Powers and duties of Official Receiver
237. Official Receiver’s powers
238. Bank account and investment
239. Official Receiver’s discretion
Division VIII—End of bankruptcy
240. Automatic discharge
241. Application for discharge
242. Official Receiver's report
243. Notice of opposition to discharge
244. Grant or refusal of discharge
245. Engaging in business after discharge
246. Reversal of order of discharge
247. Powers of the Court where conditions of discharge too onerous
248. Release from debts
249. Other effects of discharge
Division IX—Annulment of adjudication
250. Annulment
251. Effects of annulment
Division X—Voluntary arrangements for individual debtors
252. Interim order of Court
253. Application for interim order
254. Effect of application
255. Cases in which interim order can be made
256. Nominee’s report on debtor’s proposal
Division XI—Procedure where no interim order made
257. Debtor’s proposal and nominee’s report
Division XII—Creditors’ meeting
258. Summoning of creditors’ meeting
259. Decision of creditors' meeting
260. Report of decisions to Court
261. Effect of approval
262. Additional effect on undischarged bankrupt
263. Challenge of creditors' meeting’s decision
264. False representations
265. Prosecution of delinquent debtors
266. Arrangements coming to an end prematurely
For the purposes of this Part, a voluntary arrangement approved by a creditors’ meeting summoned under section 258 shall come to an end prematurely if, when it ceases to have effect, it has not been fully implemented in respect of all persons bound by the arrangement by virtue of section 261 (2) (b) (i).267. Implementation and supervision of approved voluntary arrangement
268. Availability of fast-track voluntary arrangement
269. Decision
270. Report of Official Receiver to Court on proposed voluntary arrangement
As soon as is reasonably practicable after the implementation of arrangements under section 269, the Official Receiver shall report to the Court whether the proposed voluntary arrangement has been approved or rejected.271. Approval of voluntary arrangement
272. Implementation of a voluntary arrangement approved by a creditors’ meeting
Section 267 shall apply to a voluntary arrangement which has effect by virtue of section 271 (2) as it applies to a voluntary arrangement approved by a creditors’ meeting.273. Revocation
274. Offences
Part VIII – General provisions for all debtors
275. Definition of debtor
In this Part, "debtor" means—276. Provable debt and proof of debt
277. Procedure for proving debts
278. Uncertain proof
279. Proof of debt payable six months or more after adjudication or winding-up
280. Mutual credit and set-off
281. Interest on claims
282. Voidable preference
283. Voidable security interest
284. Security interest or security for new consideration
285. Presumption that debtor unable to pay due debts
A debtor who gives a security interest within six months immediately before the date of adjudication or the commencement of the winding-up or bankruptcy shall be presumed, unless the contrary is proved, to have been unable to pay his due debts immediately after giving the security interest.286. Security for unpaid purchase price given after sale of property
Where a debtor, after purchasing property, has within two years immediately before the date of adjudication or the commencement of the winding-up given the seller a security interest over the property, section 283 shall not affect the security interest to the extent that it secures unpaid purchase money, whether it is unpaid in relation to the property over which the security interest is given or some other property, or the security interest was given not more than the prescribed number of days after the date of the sale of the property to the debtor.287. Appropriation of payment by debtor to security interest holder
288. Alienation of property with intent to defraud a creditor
289. Voidable gift
290. Procedure for setting aside voidable transaction
291. Court may order re-transfer or payment
292. Limits on recovery
The Court shall not make an order setting aside a transaction under section 290 against a person, the person proves that, when he received the property—293. Transaction with debtor for inadequate or excessive consideration
294. Court may order recipient to pay value
295. Court’s power in relation to debtor’s contribution
296. Use of repayment of debtor's contribution to property
The Official Receiver or the liquidator shall use money repaid under section 295 by the recipient of a contribution by the debtor to property, or the proceeds of the sale of the property, as the case may be, by taking the following steps in order—297. Preferential claims
298. Priority of payments for distribution of debtor’s assets
299. Right of personal creditors of partners
300. Right of creditor who has proved debt late
Any creditor who has not proved his debt before the declaration of any dividend shall be entitled to be paid out of any money for the time being in the hands of the Official Receiver or liquidator any dividend he may have failed to receive before the money is made applicable to the payment of any future dividend:Provided that he shall not be entitled to disturb the distribution of any dividend declared before his debt was proved on the ground that he has not participated in it.301. Final dividend
302. Definition of undistributed money
In sections 303 and 304, "undistributed money" means any money that—303. Undistributed money
304. Application of general fund
Part IX – Insolvency practitioners and their qualifications
305. Disqualification from appointment
306. Control of liquidator by Official Receiver
307. Remuneration of insolvency practitioner
The insolvency practitioner may be paid such remuneration as may be prescribed in the Rules.308. Acting as insolvency practitioner
309. Qualifications of an insolvency practitioner
310. Authority and further qualification to act as insolvency practitioner
311. Recognition of bodies or persons and qualifications
312. Application to competent authority
313. Grant or refusal of application
314. Notice of authorization
315. Written representations where application refused
Part X – Cross-border insolvency
Division I—General provisions
316. Purpose of this Part
The purpose of this Part is to provide effective mechanisms for dealing with cases of cross-border insolvency so as to promote the objectives of—317. Scope of application
This Part shall apply where—318. Interpretation
319. International obligations of Malawi
To the extent that this Act conflicts with an obligation of Malawi arising out of any treaty or other form of agreement to which it is a party with one or more other States, the provisions of section 211 of the Constitution shall apply.320. Competent court
The functions referred to in this Act relating to recognition of foreign proceedings and cooperation with foreign courts shall be performed by the Court.321. Authorization of insolvency practitioner to act in a foreign state
A Malawi insolvency practitioner shall be authorized to act in a foreign state on behalf of a proceeding under this Act, as permitted by the applicable foreign law.322. Public policy exception
Nothing in this Act shall prevent the Court from refusing to take an action governed by this Act if the action would be manifestly contrary to the public policy of Malawi.323. Additional assistance under other laws
Nothing in this Act shall limit the power of a Court or an insolvency practitioner to provide additional assistance to a foreign representative under the other laws of Malawi.324. Factors to consider in the interpretation of this Part
In the interpretation of this Part, regard shall be had to its international origin and to the need to promote uniformity in its application and the observance of good faith.Division II—Access of foreign representatives and creditors to courts in Malawi
325. Right of direct access
A foreign representative shall be entitled to apply directly to the Court.326. Limited jurisdiction
The mere fact that an application pursuant to this Act is made to the Court by a foreign representative, shall not subject the foreign representative or the foreign assets and affairs of the debtor to the jurisdiction of the Court for any purpose other than the application.327. Application by a foreign representative to commence proceedings
A foreign representative shall be entitled to apply to commence a proceeding under this Act if the conditions for commencing such a proceeding are otherwise met.328. Participation of a foreign representative in a proceeding under this Act
Upon recognition of a foreign proceeding, the foreign representative shall be entitled to participate in a proceeding regarding the debtor under this Act.329. Access of foreign creditors to a proceeding under this Act
330. Notification to foreign creditors of a proceeding under this Act
Division III—Recognition of a foreign proceeding and relief
331. Application for recognition of a foreign proceeding
332. Presumptions concerning recognition
333. Decision to recognize a foreign proceeding
334. Subsequent information
From the time of filing the application for recognition of the foreign proceeding, the foreign representative shall inform the Court promptly of—335. Provisional relief that may be granted upon application for recognition of a foreign proceeding
336. Effects of recognition of a foreign main proceeding
337. Relief that may be granted upon recognition of a foreign proceeding
338. Protection of creditors and other interested persons
339. Actions to avoid acts detrimental to creditors
340. Intervention by a foreign representative in proceedings in Malawi
Upon recognition of a foreign proceeding, the foreign representative may, provided the requirements of the law of Malawi are met, intervene in any proceedings in which the debtor is a partyDivision IV—Cooperation with foreign courts and foreign representatives
341. Cooperation between the Court and foreign courts or foreign representatives
342. Cooperation between insolvency practitioner and foreign courts or foreign representatives
343. Forms of cooperation
Division V—Concurrent proceedings
344. Commencement of proceedings under this Act after recognition of foreign main proceeding
After recognition of a foreign main proceeding, a proceeding under this Act may be commenced only if—345. Coordination of a proceeding under this Act and a foreign proceeding
Where a foreign proceeding and a proceeding under this Act are taking place concurrently regarding the same debtor, the Court shall seek cooperation and coordination under sections 341, 342 and 343, and the following paragraphs shall apply—346. Coordination of more than one foreign proceeding
In matters referred to in section 317, in respect of more than one foreign proceeding regarding the same debtor, the Court shall seek cooperation and coordination under sections 341, 342 and 343 and the following paragraphs shall apply—347. Presumption of insolvency based on recognition of a foreign main proceeding
In the absence of evidence to the contrary, recognition of a foreign main proceeding is, for the purpose of commencing a proceeding under this Act, proof that the debtor is insolvent.348. Rule of payment in concurrent proceedings
Without prejudice to secured claims or rights in rem, a creditor who has received part payment in respect of its claim in a proceeding pursuant to a law relating to insolvency in a foreign state may not receive a payment for the same claim in a proceeding under this Act regarding the same debtor, so long as the payment to the other creditors of the same class is proportionately less than the payment the creditor has already received.Part XI – Miscellaneous provisions
349. General offence and penalty
350. Administrative penalties
The Director may, if satisfied that a person has committed an offence under this Act, accept from the person a sum of money not exceeding the amount of the fine to which the person would have been liable if he had been prosecuted and convicted of the offence:Provided that—351. Regulations
352. Rules of Court
The Chief Justice may make rules of Court governing practice and procedure for the winding-up of businesses in Malawi and with respect to procedure in any application to the Court under the provisions of this Act, and enabling all or any of the powers and duties conferred and imposed on the Court in respect of the winding-up of businesses to be exercised or performed by the Director or by the Official Receiver, or by the liquidator as an officer of the Court and subject to the control of the Court.353. Maximum penalty for offences under subsidiary legislation
Notwithstanding the provisions of section 21 of the General Interpretation Act, a person who commits an offence against any provision of subsidiary legislation made under subsection (1) shall, on conviction, be liable to a fine of up to K200,000 and to imprisonment for one year.[Cap. 1:01]354. Repeals and savings
355. Transitional provisions
History of this document
31 December 2017 this version
Consolidation
20 May 2016
Published
Commenced
Subsidiary legislation
Title | Numbered title |
---|---|
Insolvency (Fees) Regulations, 2017 | Government Notice 14 of 2017 |
Insolvency (Practitioners) Regulations, 2017 | Government Notice 13 of 2017 |
Insolvency (Recognized Professional Bodies) Order, 2017 | Government Notice 15 of 2017 |