(a) In relation to each type of insolvency procedure available in the legal system of this economy, by what means may the administration of the corporate debtor be terminated?

 

Winding up- the administration ceases upon dissolution of the corporate debtor.

Receiver- by order of the Court or under the terms of the agreement under which the Receiver was appointed.

Administrator- by order of the SECP.

(b) Who may initiate the termination of each type of insolvency procedure?

 

Administration ceases automatically upon dissolution.

Receiver may be terminated upon application by the creditors to the Court or suo moto by the Court or under the terms of the agreement under which the receiver was appointed.

Decision for terminating administrator is taken by the SECP.

(c) On what grounds may each type of insolvency procedure be terminated?

 

Winding up- upon completion of dissolution.

Receiver/Administrator may be terminated where the purposes for which the appointment was made have been fulfilled or where management of the property is no longer required or expedient.

(d) What are the consequences for the corporate debtor of termination of the insolvency procedure? (for example to whom does control of the debtor revert following termination of the procedure; or if the debtor no longer exists, what are the procedures for and consequences of its dissolution?)

 

In a winding up the corporate debtor ceases to exist and any money representing unclaimed dividends or undistributed assets in the hands of the liquidator at the date of dissolution is paid into the SBP to the credit of the Federal Government in an account specified as the Companies Liquidation Account (Sec.432).

Where a receiver is appointed, the receiver manages the property of the company for so long as he holds this position and may be removed or may cease to hold the position upon order of the court, whereupon the property being managed by him will be managed as per order of the court.

Where the SECP determines that purposes for which administrator is appointed have been fulfilled it may terminate the administrator and allow the company to appoint directors and take over management of the company.

Where recovery proceedings are initiated, control stays in the hands of the debtor and the fate of the company depends on its situation once recovery has been made.