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      Question

      Section 41 of the Banking Regulation Act, 1949 requires

      the official liquidator of a wound-up banking company to submit a preliminary report to the High Court. The report must be submitted within what period from the date of the winding-up order?
      A One month from the date of the winding-up order Correct Answer Incorrect Answer
      B Six months from the date of the winding-up order Correct Answer Incorrect Answer
      C Fifteen days from the date of the winding-up order Correct Answer Incorrect Answer
      D Two months from the date of the winding-up order Correct Answer Incorrect Answer
      E Three months from the date of the winding-up order Correct Answer Incorrect Answer

      Solution

      Section 41, as substituted by the Banking Companies (Second Amendment) Act, 1960 (Act 37 of 1960), requires the official liquidator to submit a preliminary report to the High Court within two months from the date of the winding-up order, giving information required by the relevant Companies Act provision in so far as available and also stating the amount of assets in cash in his custody or control on the date of the report and the amount likely to be collected in cash before the expiry of that two-month period. The purpose is to enable the speedy identification and realisation of liquid assets so that preferential payments under Section 530 of the Companies Act, 1956 and the bankтАЩs depositor and creditor obligations under the Act can be discharged as quickly as possible.

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