320 Consequences of appointment of liquidator and compulsory winding up Order

(1) Subject to subsection (2), with effect from the appointment of a liquidator
in a compulsory winding up of a company —


(a) the liquidator has custody and control of the assets of the
company; and

(b) the directors of the company remain in office but they cease to
have any powers, functions or duties, except to the extent that
the liquidator or the Court authorises their continuance.

(2) Subsection (1)(a) does not affect the right of a secured creditor to take
possession of and realise or otherwise deal with assets of the company
over which the creditor has a security interest.

(3) A person who purports to exercise any powers of a director at a time
when, pursuant to subsection (1), those powers have ceased and their
exercise has not been authorised by the liquidator or the Court, commits
an offence and is liable on conviction to a fine not exceeding US$10,000.

(4) On the making of a compulsory winding up order, the company shall
cease to carry on business except in so far as may be expedient for the
beneficial winding up of the company.

(5) Subject to subsection (4), the company‘s corporate state and powers shall,
notwithstanding anything to the contrary in its memorandum and articles,
continue until dissolution.

(6) A company which contravenes subsection (4) commits an offence and is
liable on conviction to a fine not exceeding US$10,000.