ACT 125

COMPANIES ACT 1965 (REVISED - 1973)

PART IX - INVESTIGATIONS

Section 204. Suspension of actions and proceedings by declared company.

(1) On and after the appointment of an inspector in respect of any declared company until the expiration of three months after the inspector has presented his final report to the Minister, no action or proceeding shall without the consent of the Minister (which may be given generally or in a particular case and which may be given subject to such conditions and limitations as he thinks fit) be commenced or proceeded with in any Court— (a) by the company upon or in respect of any contract, bill of exchange or promissory note; or (b) by the holder or any other person in respect of any bill of exchange or promissory note made, drawn or accepted by or issued, transferred, negotiated or endorsed by or to the company unless the holder or other person— (i) at the time of the negotiation, transfer, issue, endorsement or delivery thereof to him gave therefor adequate pecuniary consideration; and (ii) was not at the time of the negotiation, transfer, issue, endorsement or delivery thereof to him or at any time within three years before that time a member, officer, agent or employee of the company or the wife or husband of any member, officer, agent or employee of the company. (2) Any action or proceeding which is commenced or proceeded with in contravention of this section shall be void and of no effect.