ACT 28
KOOTU FUNDS (PROHIBITION) ACT 1971



Section 9. Winding up on application by Minister.


(1) If such company fails to take action under the provisions of section 8 (2) or if, having taken such action, it fails to obtain the required alteration of its memorandum of association and (if any) articles of association or complete its voluntary winding up or obtain the order of the Court that it be wound up, as the case may be, within a reasonable time, the Minister-

under the provisions of section 205 of the Companies Act 1965, and such company shall, for the purpose of the said section, be deemed to be a declared company in respect of which a report has been made by an inspector, as referred to in the said section 205, and the petition shall be dealt with by the Court under the provisions of the Companies Act 1965, with such adaptations as may be necessary, as a petition of the Minister under the said section 205 in respect of a company which is referred to in the said section 205 as a declared company in respect of which a report has been made by an inspector.

(2) For the purpose of any proceedings under the Companies Act 1965, for the winding up of such company, the rules relating to the winding up of companies shall be applicable with such modifications as the Court in its discretion deems just and either expedient or necessary:

Provided that if the Minister submits to the Rules Committee proposals for making special provision under section 372 of the Companies Act 1965, in relation to such companies, the Committee may by rules under that section give effect to the proposals either as submitted or subject to such modifications as the Committee thinks fit.

(3) The proposals under the proviso to subsection (2), and the rules made by virtue thereof, may provide for modifying or excluding, in relation to such companies, the provisions of Part X of the Companies Act 1965, requiring the holding of meetings or otherwise relating to the procedure in a winding up.

(4) The expenses of the winding up in consequence of a petition under subsection (1) (including the remuneration of the liquidator) shall, in so far as they cannot be met out of the assets of the company be defrayed by the Minister; and the Minister may make advances towards the payment of such expenses, or make a contribution thereto to the exoneration (so far as the contribution extends) of the assets of the company.

(5) The funds specified in the Second Schedule to the Financial Procedure Act 1957 [Act 61], shall (without prejudice to section 10 (4) of that Act) include a fund to be known as the Kootu Fund Companies Liquidation Fund, for meeting the expenditure of the Minister under this section, and the said section 10(3) shall apply to moneys received by the Minister in repayment of advances made by him under this section as it applies to the moneys mentioned in the said section 10(3).


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