Section 174: Court supervision of liquidation

174. Court supervision of liquidation (1) The Court shall have regard to the conduct of every liquidator and, where a liquidator does not faithfully perform his duties and observe the requirements of the Court or where there is a failure to comply with a relevant duty, or where a complaint is made in that behalf to the Court by a creditor, contributory or committee of inspection, or by the Official Receiver or Registrar of Companies or the Director, the Court shall inquire into the matter and make such order as it thinks fit. (2) The Registrar of Companies, the Director or the Official Receiver may report to the Court any matter which in his opinion is a misfeasance, neglect or omission on the part of the liquidator and the Court may order the liquidator to make good any loss which the estate of the company has sustained and make such other order it thinks fit. (3) On the application of the liquidator, the committee of inspection, the Director, the Registrar of Companies, or, with the leave of the Court, a creditor, shareholder, other entitled person, or director of a company in liquidation, the Court may— (a) give directions in relation to any matter arising in connection with the liquidation; (b) confirm, reverse or modify an act or decision of the liquidator; (c) order an audit of the accounts of the liquidation; (d) order the liquidator to produce the accounts and records of the liquidation for audit and to provide the auditor with such information concerning the conduct of the liquidation as the auditor requests; [Issue 3] I14 – 102 Revised Laws of Mauritius (e) in respect of any period, review or fix the remuneration of the liquidator at a level which is reasonable in the circumstances; (f) to the extent that an amount retained by the liquidator as remuneration is found by the Court to be unreasonable in the circumstances, order the liquidator to refund the amount; (g) declare whether or not the liquidator was validly appointed or validly assumed custody or control of property; and (h) make an order concerning the retention or the disposition of the accounts and records of the liquidation or of the company. (4) The powers given by subsection (3) are in addition to any other powers the Court may exercise in its jurisdiction relating to liquidators, and may be exercised in relation to a matter occurring before or after the commencement of the liquidation, or the removal of the company from the register, and whether or not the liquidator has ceased to act as liquidator when the application or the order is made. (5) Subject to subsection (6), a liquidator who has— (a) obtained a direction of the Court with respect to a matter connected with the exercise of the powers or functions of liquidator; and (b) acted in accordance with the direction, is entitled to rely on having so acted as a defence to a claim in relation to anything done or not done in accordance with the direction. (6) The Court may, on the application of any person, order that, by reason of the circumstances in which a direction was obtained under subsection (1), the liquidator does not have the protection given by subsection (3).