Related documents
- Is commenced by Insolvency Act, 2011 (Commencement) Instrument, 2013
- Amends Companies Act
- Repeals Bankruptcy Act
- Repeals Deeds of Arrangement Act
Uganda
Insolvency Act, 2011
Act 14 of 2011
- Published in Uganda Gazette 57 on 23 September 2011
- Assented to on 8 August 2011
- Commenced on 1 July 2013 by Insolvency Act, 2011 (Commencement) Instrument, 2013
- [This is the version of this document from 23 September 2011.]
Part I – Preliminary
1. Commencement
This Act shall come into force on a date appointed by the Minister by statutory instrument and different dates may be appointed for different provisions.2. Interpretation
In this Act, unless the context otherwise requires—“administrative receiver” means—(a)a receiver appointed over the whole or substantially the whole of the property and undertaking of a grantor; or(b)a person who would be a receiver but for the appointment of some other person as the receiver of part of a grantor’s property;“administrator” means a person specified as administrator in an administration deed under section 162;“admissible” with respect to a claim, means a claim that may be admitted in liquidation or bankruptcy;“appointing document” means the writing by or under which an appointment is made and includes a court order;“arrangement” means a composition in satisfaction of an individual’s debts or a scheme of arrangement of an individual’s affairs or other arrangement in respect of which an arrangement order is made under section 125;“arrangement order” means an order made to give effect to an arrangement;“asset” means an asset of a company in liquidation or in the estate of a bankrupt;“associated company” means a company or other business organisation in which the insolvent company holds majority or controlling shares ;“bankrupt” means an individual in respect of whom a bankruptcy order has been made under section 20;“bankruptcy debt”, means any of the following—(a)a debt or liability to which the bankrupt is subject after the commencement of the bankruptcy;(b)a debt or liability to which the bankrupt may become subject after the commencement of the bankruptcy by reason of any obligation incurred before the commencement of the bankruptcy and includes after-discharge from bankruptcy; or(c)any interest that may be claimed in the bankruptcy,and in determining for the purposes of this Act, whether a liability in tort is a bankruptcy debt, the bankrupt is deemed to become subject to that liability by reason of an obligation incurred at the time when the cause of action arose;“bankruptcy’s estate” has the meaning under section 31;“bankruptcy order” means an order adjudicating an individual bankrupt;“charge” means an interest in—(a)a chattel paper;(b)a document of title;(c)goods;(d)an intangible;(e)money;(f)a negotiable instrument; or(g)a security,created or provided by a transaction that in substance secures payment or performance of an obligation, without regard to the form of the transaction or the identity of the person who has title to the collateral and includes a mortgage or lien;“claim” means a claim in a liquidation or bankruptcy;“committee of inspection” means a committee of inspection appointed under sections 47, 71 or 116;“company” has the meaning assigned to it in the Companies Act;“court” means the High Court or a court presided over by a chief magistrate;“currency point” has the value assigned to it in the First Schedule;“debt” means a debt or liability, present or future, certain or contingent and includes an ascertained debt or liability for damages;“director” means—(a)in relation to a company, any person occupying the position of director under any title;(b)in respect of a foreign company, includes an agent, officer or employee responsible for the business of the foreign company in Uganda; or(c)in respect of any other body corporate, means a person with functions similar to those of a director, but does not include a receiver, provisional administrator or administrator;“document” includes an invoice, order, letter, record, summons, notice, order other legal process, register, index, report, certificate or accounts, in any form, including any writing, material and information stored by means of any mechanical or electronic device and any material derived from the device;“foreign company” means a foreign company registered under the Companies Act;“grantor” means a person in respect of whose property a receiver is or may be appointed;“individual” with respect to Parts II, III and V, means a debtor in respect of whom a bankruptcy order is subsequently made;“insolvency” includes bankruptcy;“insolvency practitioner” means a person who is not an official receiver who is qualified to act as an insolvency practitioner within the meaning of section 203;“instrument of incorporation” means the documents used to incorporate a company under the Companies Act;“lifting the veil” means the power which the court has where the shareholders or directors of the company in question or a person in a similar position have used their business to defraud creditors of the business or to do some other wrongful or illegal act, and the court ignores the protection from liability offered by the corporation or limited liability status of the business and makes the shareholders or directors or other person personally liable for debts, liabilities and obligations of the company;“liquidator” means a liquidator of a company appointed under sections 62 or 70; and includes a provisional liquidator;“Minister” means the Minister responsible for Justice;“official receiver” means a person appointed under section 198;“preferential debts” means the debts referred to in section 12 (4), (5) and (6) ;“prescribed amount” means the amount specified in the Second Schedule;“property” includes money, goods, things in action, proceeds, land and includes every description of property wherever situated, obligations, interest, whether present, future,, vested or contingent, arising out of or incidental to property;“proceeds” means identifiable or traceable personal property in any form derived directly or indirectly from any dealing with the collateral or proceeds of the collateral, and includes—(a)a right to an insurance payment or any other payment as indemnity or compensation for loss or damage to the collateral or proceeds; and(b)a payment made in total or partial discharge or redemption of an intangible, a negotiable instrument, a security or chattel paper;“property in receivership” means property in respect of which a receiver is appointed;“provisional administrator” means a provisional administrator appointed under section 139;“provisional liquidator” means a provisional liquidator appointed under section 94;“public notice” means notice given in accordance with section 256;“receiver” means a receiver or a manager and includes a receiver and manager or administrative receiver in respect of any property and any person appointed as receiver—(a)by or under any document; or(b)by the court in the exercise of a power to make such an appointment given by any Act or any rule of court or in the exercise of its inherent jurisdiction,whether or not the person appointed is empowered to sell any of the property in receivership;“registrar” has the meaning assigned to it in the Companies Act;“secretary” in relation to a company means a person appointed to perform the duties of secretary under the Companies Act;“secured creditor” means a creditor who holds in respect of a debt or obligation a charge over property;“security interest” means a right that is enforceable against persons generally, arising out of an interest in a chattel paper, a document of title, goods, an intangible, money, or a negotiable instrument and includes—(a)a fixed charge;(b)a floating charge;(c)an interest created or provided for by—(i)a chattel mortgage;(ii)a conditional sale agreement including an agreement to sell subject to retention of title;(iii)a hire purchase agreement;(iv)a pledge;(v)a security trust deed;(vi)a trust receipt;(vii)an assignment;(viii)a consignment;(ix)a lease; or(x)a transfer of chattel paper,which secures payment or performance of an obligation; without regard to the form of the transaction and without regard to the identity of the person who has title to the collateral, including where title to the collateral is in the secured party.“shareholder” has the meaning assigned to it in the Companies Act;“special resolution” has the same meaning as in the Companies Act;“statutory demand” means a demand made in accordance with section 4;“transaction” includes a gift, settlement, agreement or arrangement and references to entering into a transaction are construed accordingly;“transferee company” means a company to which a transfer is being made;“transferor company” means the company effecting a transfer;“trustee”, in relation to bankruptcy means the trustee of the bankrupt’s estate;“working day” means any day other than a Saturday, Sunday or a public holiday;Part II – Inability to pay debts, creditors’ claims and voidable transactions
3. Inability to pay debts
4. Statutory demand
5. Setting aside a statutory demand
Creditor's claims
6. Ascertaining amount of claim and interest
7. Fines and penalties
A fine or other monetary penalty imposed, whether before or after the commencement of the liquidation or bankruptcy, in respect of an offence committed before the commencement of the liquidation or bankruptcy and costs ordered to be paid with respect to proceedings for the offence, is admissible in liquidation or bankruptcy.8. Claim of an unascertained amount
9. Mutual credit and set-off
10. Claims by unsecured creditors
11. Claims by secured creditors
12. Preferential debts
13. Non-preferential debts
14. Surplus assets
Where there is a surplus after making the payments referred to in section 13—(a)in the case of a bankruptcy, the trustee in bankruptcy shall pay the surplus to the bankrupt; and(b)in the case of a liquidation, the liquidator shall distribute the company’s surplus assets in accordance with the memorandum and articles of association of the company and the Companies Act.Voidable transactions
15. Preferences
16. Transactions at undervalue
A transaction entered into by a company or individual is voidable on the application of the creditor, receiver, member or contributory, liquidator or trustee if—17. Voidable charges
18. Insider dealings
19. Procedure for setting aside voidable transactions
Part III – Individual insolvency
20. Petition for bankruptcy
21. Statement of affairs
22. Public examination of debtor
23. Inquiry into debtor’s dealings and property
24. Official receiver’s notice of commencement of bankruptcy and creditor’s first meeting
The official receiver shall, within fourteen days after the commencement of the bankruptcy—25. Appointment of trustee
The creditors’ first meeting shall, appoint a trustee and vest the bankrupt’s estate in the trustee.26. Trustee’s notice of bankruptcy and particulars
The trustee shall, within five working days after his or her appointment, give public notice of—27. Effect of bankruptcy order
28. Special manager of bankrupt’s estate
29. Duties of a trustee
30. Trustee’s notice to creditors
Bankrupt's estate
31. Bankrupt’s estate
32. Property acquired after commencement of bankruptcy
General powers of trustee and conduct of bankruptcy
33. Trustee’s power to obtain documents
34. Trustee’s power to allow bankrupt to manage property
A trustee may appoint the bankrupt—35. Trustee’s power to disclaim onerous property
36. Official name of trustee
The official name of a trustee in bankruptcy shall be ‘the trustee of the property of a bankrupt’, with an insertion of the name of the bankrupt and by that name the trustee may exercise any of the trustee’s functions, powers and duties under this Act.37. Vacation of office by trustee
38. Duties of a bankrupt
39. Compliance order
Where a person does not comply with a requirement of the trustee under section 33, the court may, on the application of the trustee, order the person to comply and may make ancillary orders as it thinks fit.40. Search and seizure
41. Termination of bankruptcy
42. Discharge
43. Effect of discharge
44. Annulment, revocation or setting aside of bankruptcy order
45. Consequences of bankruptcy
Rights of creditors
46. Creditors’ meetings during bankruptcy
47. Committee of inspection
Declaration and distribution of bankrupt's estate
48. Declaration and distribution of dividends
49. Final distribution
50. Second bankruptcy
Where—(a)a second or subsequent bankruptcy order is made against a discharged bankrupt; or(b)an order is made for the administration in bankruptcy of the estate of a deceased bankrupt,any property which immediately before the subsequent order was in the bankrupt’s estate, shall vest in the trustee in the subsequent bankruptcy or administration in bankruptcy.Supervision and enforcement by the court
51. Court supervision of trustee
52. Enforcement of trustee’s duties
Bankruptcy offences
53. Absconding
54. Bankrupt not to obtain credit or engage in business without disclosing bankruptcy
55. Failure to keep proper accounts of business
Part IV – Corporate insolvency
Liquidation
56. Application of liquidation provisions to foreign companies
57. Modes of liquidation
The liquidation of a company may be—(a)by the court;(b)voluntary; or(c)subject to the supervision of the court.Voluntary liquidation
58. Voluntary liquidation
59. Notice of resolution for voluntary liquidation
Consequences of voluntary liquidation
60. Effect of voluntary liquidation on the business and status of a company
61. Transfers or alterations after commencement of voluntary liquidation are void
Any transfer of shares, not being a transfer made to or with the sanction of the liquidator and any alteration in the status of the members of the company, made after the commencement of a voluntary liquidation, is void.Members’ voluntary liquidation
62. Power of a company to appoint and fix remuneration of liquidators
63. Power to fill vacancy in office of liquidator
64. Power of a liquidator to accept shares or other interests as consideration for sale of property of company
65. Duty of liquidator to call creditors’ meeting in case of insolvency
66. Duty of a liquidator to call a general meeting at the end of each year
67. Final meeting and dissolution
68. Alternative provisions as to annual and final meetings in case of insolvency
Where a liquidator calls a meeting in accordance with section 65, sections 66 and 67 shall not apply, and sections 76 and 77 shall apply to the liquidation of the company as if the liquidation were a creditors’ voluntary liquidation and not a members’ voluntary liquidation, but that the liquidator shall not be required to call a meeting of creditors under section 76 at the end of the first year of the commencement of the liquidation unless the meeting held under section 65 is held more than three months before the end of that year.Creditors’ voluntary liquidation
69. Meeting of creditors
70. Appointment of liquidator
71. Appointment of committee of inspection
72. Proceedings of committee of inspection
Subject to section 71, the following shall apply to the proceedings of a committee of inspection—73. Fixing of liquidator’s remuneration and cessation of directors’ powers
74. Power to fill vacancy in office of liquidator
Where a vacancy occurs, by death, resignation or otherwise in the office of a liquidator other than a liquidator appointed by or by the direction of, the court, the creditors may fill the vacancy.75. Power of liquidator to accept shares in creditors’ voluntary liquidation
Section 64 shall apply to creditors’ voluntary liquidation and to members’ voluntary liquidation, except that the powers of the liquidator under that section shall not be exercised without the approval of the court, or of the committee of inspection in substitution for the approval by special resolution.76. Duty of liquidator to call meetings of company and of creditors at end of each year
77. Final meeting and dissolution
Members’ and creditors’ voluntary liquidation
78. Members’ and creditors voluntary liquidation
Sections 79 to 86, apply to both members’ and creditors’ voluntary liquidation.79. Distribution of the property of a company
Subject to the provisions of this Act on preferential payments, the assets of a company shall, on its liquidation, be applied in satisfaction of its liabilities simultaneously and equally, and, subject to that application, shall unless the articles of association otherwise provide, be distributed among the members according to their rights and interests in the company.80. Powers and duties of a liquidator in voluntary liquidation
81. Power of court to appoint and remove liquidator in voluntary liquidation
82. Notice by liquidator of his or her appointment
83. Arrangement when binding on creditors
84. Power to apply to court to have questions determined or powers exercised
85. Costs of voluntary liquidation
All costs, charges and expenses properly incurred in the liquidation, including the remuneration of the liquidator, shall be payable out of the assets of the company in priority to all other claims.86. Saving of rights of creditors and contributories
The voluntary liquidation of a company shall not bar the right of any creditor or contributory to have it liquidated by court, but in the case of an application by a contributory, the court shall be satisfied that the rights of the contributories will be prejudiced by a voluntary liquidation.Liquidation subject to supervision by court
87. Power to order liquidation subject to supervision
Where a company passes a resolution for voluntary liquidation, the court may make an order that the voluntary liquidation shall continue, subject to the supervision of court and with the liberty for the creditors, contributories or other interested persons, to apply to court and generally on such terms and conditions as the court may think just.88. Effect of application for liquidation subject to supervision
An application for the continuance of a voluntary liquidation subject to the supervision of the court shall, for the purpose of giving jurisdiction to the court over actions, be taken to be a petition for liquidation by the court.89. Power of court to appoint or remove liquidators
90. Effect of supervision order
Liquidation by court
91. Jurisdiction
The jurisdiction in liquidation matters shall be exercised by the High Court.92. Circumstances in which the court may appoint liquidator
93. Commencement of liquidation by court
94. Provisional liquidator
95. Notice of liquidation
The provisional liquidator shall, within fourteen days after the commencement of the liquidation—96. Notice of appointment and of liquidation
97. Effect of liquidation
98. Special manager of company
99. Fundamental duties of a liquidator
100. General duties of liquidator
Without prejudice to section 99, a liquidator shall have all the other functions and duties specified in this Act and shall in particular—(a)take custody and control of all the company’s assets;(b)register his or her interest in all land and other assets belonging to the company notwithstanding any interest other;(c)keep company money separate from other money held by or under the control of the liquidator;(d)keep, in accordance with generally accepted accounting procedures and standards, full accounts and other records of all receipts, expenditure and other transactions relating to the liquidation, and retain the accounts and records of the liquidation and of the company for not less than six years after the liquidation ends; and(e)permit those accounts and records and the accounts and records of the company, to be inspected by—(i)any committee of inspection unless the liquidator believes on reasonable grounds that inspection would be prejudicial to the liquidation; or(ii)where the court so orders, any creditor or shareholder.General provisions relating to liquidation
101. General powers of liquidator
A liquidator shall have all the powers necessary to carry out the functions and duties of liquidator under this Act and may delegate the powers to his or her appointed agent.102. Liquidator’s preliminary report
103. Liquidator’s interim reports
104. Liquidator’s final report
105. Liquidator’s power to obtain documents
106. Liquidator’s power to examine and obtain information
107. Liquidator’s power to disclaim onerous property
108. Pooling of assets of associated companies
On application of the liquidator or any creditor or shareholder, the court may, if satisfied that it is just and equitable to do so, lift the veil of any associated company on terms and conditions as it may consider fit to facilitate and ensure due completion of the liquidation process in a just and equitable manner and may order that—109. Vacation of the office of liquidator
110. Duties of directors, secretary and employees
111. Compliance order
Where a person does not comply with a requirement of a liquidator under section 105 or 110 the court may, on the application of the liquidator, order the person to comply and make ancillary orders as it thinks fit.112. Search and seizure
113. Absconding during or pending liquidation
114. Completion of liquidation
Rights of creditors and shareholders
115. Creditors’ or shareholders’ meetings during liquidation
116. Committee of inspection during liquidation
Supervision and enforcement by the court
117. Court supervision of liquidation
118. Enforcement of liquidator’s duties
Part V – Arrangement in respect of individuals
Interim order
119. Interim order
120. Application for an interim order
121. Duration of interim order
Subject to sections 123(2) and (3), an interim order ceases to have effect at the end of fourteen working days after the making of the order.122. Duties of a debtor
Upon the court making an interim order, the debtor shall submit to the proposed supervisor—123. Report to court
124. Creditors’ meeting to consider proposed arrangement
Arrangement
125. Arrangement order
126. Notice of arrangement
Immediately after the arrangement order is made, the supervisor shall—127. Effect of arrangement
128. Function of supervisor
The supervisor shall supervise the implementation of the arrangement and he or she shall on the day of his or her appointment notify the official receiver in writing of the appointment.129. Creditors’ meetings during arrangement
130. Remuneration of supervisor
A supervisor is entitled to—131. Vacation of the office of supervisor
132. Variation of arrangement
133. Termination of arrangement
An arrangement terminates if—134. Termination of arrangement by court
135. Notice on termination of arrangement
Where an arrangement is terminated, the supervisor shall—(a)send notice of the termination to each creditor;(b)give public notice of the termination; and(c)notify the official receiver in writing.Supervision and enforcement by the court
136. Court supervision of supervisor
137. Enforcement of supervisor’s duties
Part VI – Administration in respect of companies
138. Application of administration provisions to foreign companies
Provisional administration
139. Appointment of provisional administrator
140. Fundamental duties of provisional administrator
141. General duties of provisional administrator
Without prejudice to section 140, a provisional administrator shall perform other functions and duties specified in this Act and shall—142. Commencement of provisional administration
143. Effect of provisional administration
144. Notice of provisional administration
145. Duration of provisional administration
146. Creditor’s meeting to consider appointment of provisional administrator
147. Provisional administrator’s proposals
148. Creditor’s meeting to consider proposals
149. Requirements of administration deed
An administration deed shall specify—150. Execution of administration deed
151. Notice of termination of provisional administration
Where—152. Transition to liquidation
Conduct of provisional administration
153. Powers of provisional administrator
154. Provisional administrator’s relationship with third parties
A person paying money or giving other consideration to a provisional administrator shall not be required to enquire whether the provisional administrator was validly appointed or authorised to act as provisional administrator.155. Role of directors and secretary during provisional administration
156. Compliance order
Where—157. Disposal of charged property during provisional administration
A provisional administrator shall not dispose of property subject to a charge unless—158. Liabilities of provisional administrator
159. Provisional administrator’s right to indemnity
160. Relief from liability for provisional administrator
161. Provisional administrator’s reports to the official receiver
Administration
162. Commencement of administration
163. Notice of administration
Immediately after the commencement of the administration, the administrator shall—164. Effect of administration
165. Function of administrator
The administrator shall supervise the implementation of the administration deed.166. Creditor’s meetings during administration
167. Variation of administration deed by creditors
168. Termination of administration
An administration shall be terminated where—169. Termination of administration by court
170. Notice on termination of administration
Where an administration has been terminated the administrator shall—(a)give public notice of the termination;(b)send a written notice of the termination to each of the company’s creditors;(c)send a written notice of the termination to the shareholders and registrar; and(d)deliver a notice of termination to the official receiver.Provisional administrators and administrators
171. Remuneration of provisional administrator or administrator
172. Vacation of the office of provisional administrator or administrator
173. Court supervision of provisional administrator or administrator
174. Enforcement of provisional administrator’s or administrator’s duties
Part VII – Corporate and individual receivership
175. Application of receivership provisions to foreign companies
176. Commencement of receivership
177. Liability for invalid appointment of receiver
178. Notice of receivership
179. Fundamental duty of a receiver
180. General duties of receiver
181. Powers of receiver
182. Receiver’s relationship with third parties
A person paying money or giving other consideration to a receiver shall not be required to inquire whether the receiver was validly appointed or is authorised to act as a receiver.183. Role of grantor in a receivership
184. Rights and obligations of a grantor in receivership
185. Compliance order
Where a person does not comply with section 183 or with a request of the receiver made under that section, on the application of the receiver, the court may order the grantor or any director or secretary, to comply and may make ancillary orders as it thinks fit.186. Liabilities of receiver
187. Receiver’s right to indemnity
188. Relief from liability for receiver
189. Receiver’s preliminary report
190. Receiver’s other reports
A receiver shall, within twenty working days after—191. General provisions on reports
192. Priorities for application of proceeds of receivership
193. Vacation of office of receiver
194. Powers of receiver on liquidation or bankruptcy
195. Court supervision of receiver
196. Enforcement of receiver’s duties
197. Termination of receivership by court
Part VIII – Official receiver and regulation of insolvency practitioners
Official receiver
198. Appointment of official receiver
An official receiver shall be appointed by the Minister to perform the functions of official receiver under this Act.199. Powers and functions of the official receiver
The official receiver shall—200. Official receiver’s seal
The official receiver shall have an official seal.201. Companies liquidation account
An account, to be called the companies liquidation account, shall be kept by the official receiver with a bank prescribed by the Minister by regulations and all monies received by the official receiver in respect of proceedings under this Act shall be paid into that account.202. Investment of surplus funds
203. Meaning of “insolvency practitioner”
204. Qualifications to act as insolvency practitioner
205. Acting as insolvency practitioner without qualification
206. Persons disqualified from acting as liquidator, provisional liquidator, administrator or provisional administrator
The following persons shall not be appointed or act as liquidators, provisional liquidators, provisional administrators or administrators—207. Persons disqualified from acting as receiver
The following persons shall not be appointed or act as receiver—208. Persons disqualified from acting as trustee or supervisor
A creditor of an individual may not be appointed or act as a supervisor of an individual’s arrangement or as trustee of his or her estate.209. Prohibition order
Other provisions regarding insolvency practitioners
210. Appointment of two or more insolvency practitioners
Where two or more insolvency practitioners are appointed, they may act jointly and severally to the extent that they share the same powers unless expressly provided to the contrary in the appointing document.211. Qualified privilege in respect of proceedings for defamation
An insolvency practitioner shall have qualified privilege in any proceedings for defamation in respect of any matter included in any report or other document prepared under this Act.Part IX – Cross-border insolvency
Reciprocity with other States or territories
212. Declaration of reciprocating States or territories and courts
213. Effect of order of reciprocating court against property owner in Uganda
Where a bankruptcy or any appointment of a special manager or interim receiver, has been made in any reciprocating territory in bankruptcy proceedings against a debtor with property in Uganda, the order or appointment shall, subject to this Part, have the same effect as if it had been made in bankruptcy proceedings against the debtor in Uganda and the debtor and his or her creditors shall be taken to be in the same position, with the same rights and privileges and subject to the same disqualifications, restrictions, obligations and liabilities in every respect as if the order or appointment was made under this Act.214. Vesting of bankrupt’s property in Uganda, in trustee appointed in reciprocating territory
Where a bankruptcy order of adjudication is made by a reciprocating court, the property of the bankrupt situated in Uganda shall, by virtue of the order, vest in the trustee of the property of the bankrupt in the reciprocating state, in the same manner as if the bankruptcy order and the appointment of trustee had been made in Uganda and the superintendence of the trustee shall continue to be exercised by the committee of inspection appointed in the reciprocating state or, if there is no such committee, by the reciprocating court.215. Local powers of official receiver appointed in a reciprocating state
216. Official receiver in Uganda to act as agent of reciprocating state in insolvency matters
217. Mode of requesting official receiver to act as agent for debts in Uganda
218. Duties of the official receiver acting as agent to remit proceeds
The official receiver in Uganda shall remit the proceeds of the realisation of the property of the bankrupt and all other money of the estate coming into his or her hands as an agent to the person for whom he or she is acting, after deducting the expenses that may have been properly incurred by him or her, in accordance with the law of the reciprocating State in which the bankruptcy order was made.219. Transmission of proof of debts in Uganda
Where an order of bankruptcy has been made in a reciprocating State and the official receiver of Uganda is acting as an agent, proof of debts contracted by the debtor in Uganda may be filed with the local official receiver in Uganda in the form prescribed by the law of the reciprocating state and in such cases it shall be his or her duty to receive, deal with and forward in the manner prescribed by the rules made under this Part proof to the official receiver or trustee, of the reciprocating state.220. Power of courts in Uganda to make orders
On the application of the official receiver, any creditor or other interested person, where it appears to court that bankruptcy proceedings have been instituted in a reciprocating court against a debtor with property situated in Uganda, the court may, where no proceedings have been instituted in Uganda, regarding the person, property and affairs of the debtor, exercise all the powers to stay the pending proceedings and to grant any other necessary interim relief or to arrest the debtor or seize any documents, records, money or goods or the debtor.221. Enforcement of warrant or order of reciprocating court in Uganda
Any order or warrant made or issued by a reciprocating court shall be enforced by the court in Uganda in the same manner, in all aspects as if the order or warrant had been made or issued in Uganda.222. Limitation on the powers of the courts
Subject to this section, a court in a reciprocating State shall have sole jurisdiction in all matters in or arising out of any bankruptcy proceedings taken before the court against a debtor with property in Uganda and a court in Uganda shall not entertain any suit, application or other matter arising in or out of such proceedings except—223. Concurrent bankruptcy proceedings
224. Power of the official receiver of Uganda to require receiver in reciprocating state or territory to act as agent
225. Power of Chief Justice to make rules for this Part
General provisions
226. Interpretation of sections 227 to 252
227. Application of sections 228 to 252
Sections 228 to 252 apply where—228. Conflicting international obligations
Where any provision of this Part conflicts with an obligation of Uganda arising out of any treaty or other form of agreement to which it is a party with one or more States, the treaty or agreement shall prevail.229. Authorisation to act in a foreign State
A liquidator or trustee is authorised to act in a foreign State in a proceeding under this Part of the Act as permitted by the applicable foreign law.230. Additional assistance under other laws
Nothing in this Part limits the power of a court or a trustee or liquidator to provide additional assistance to a foreign representative under the other laws of Uganda.Access of foreign representative and creditors to the High Court
231. Rights of direct access
232. Participation of a foreign representative in proceedings under this Act
Upon recognition of a foreign proceeding by the High Court, the foreign representative shall be entitled to participate in a proceeding regarding the debtor under this Act.233. Access of foreign creditors to proceedings under this Act
234. Notification to foreign creditors of proceedings under this Act
Recognition of a foreign proceeding and relief
235. Application for recognition of foreign proceedings
236. Presumptions concerning recognition
237. Decision to recognise foreign proceedings
238. Subsequent information
From the time of filing the application for recognition of the foreign proceeding, the foreign representative shall immediately inform the court of—239. Relief that may be granted upon application for recognition of a foreign proceeding
240. Effects of recognition of foreign main proceedings
241. Relief that may be granted upon recognition of foreign proceedings
242. Protection of creditors and other interested persons
243. Actions to avoid acts detrimental to creditors
244. Intervention by a foreign representative in proceedings in Uganda
Upon recognition of foreign proceedings the foreign representative may, with the leave of court where the requirements of the law of Uganda are met, intervene in any proceedings in which the debtor is a party.Cooperation with foreign courts and foreign representatives
245. Cooperation and direct communication between courts of Uganda and foreign courts and foreign representatives
246. Cooperation and direct communication between the trustee or liquidator and foreign courts and foreign representatives
247. Forms of co-operation
Cooperation referred to in sections 245 and 246 of this Act may be achieved by any appropriate means, including—(a)appointment of a person or body to act at the direction of the court;(b)communication of information by any means considered appropriate by the court;(c)co-ordination of the administration and supervision of the debtor’s assets and affairs;(d)approval or implementation by courts of agreements concerning the co-ordination of proceedings; and(e)co-ordination of concurrent proceedings regarding the same debtor.Concurrent proceedings
248. Commencement of a proceeding under this Act after recognition of a foreign main proceeding
249. Coordination of proceeding under this Act and a foreign proceeding
When a foreign proceeding and a proceeding under this Act regarding the same debtor are taking place concurrently regarding the same debtor, the court shall seek cooperation and coordination under sections 245, 246 and 247 as follows—250. Coordination of more than one foreign proceeding
In an application for recognition of foreign proceeding under section 235, involving more than one foreign proceeding regarding the same debtor, court shall seek cooperation and co-ordination under sections 245, 246 and 247, under the following conditions—251. Presumption of insolvency based on recognition of a foreign main proceeding
In the absence of evidence to the contrary, recognition of a foreign main proceeding is, for the purpose of commencing a proceeding under this Act, proof that the debtor is unable to pay his or her debts.252. Rule of payment in concurrent proceedings
A creditor who receives part-payment in respect of a claim in a proceeding under a law relating to insolvency in a foreign State may not receive a payment for the same claim in a proceeding under this Act regarding the same debtor, where the payment to the other creditors of the same class is proportionately less than the payment the creditor has already received, except for secured claims or rights in rem.Part X – General
253. Application of fines
254. Jurisdiction
255. Validity of action notwithstanding defect in appointment or qualification
The acts of—256. Public notices
A person required to give public notice of any matter shall do so by inserting notice of the matter—257. Disposition of property after commencement of liquidation by court is void
In a liquidation by the court, any disposition of the property of the company, including things in action and any transfer of shares or alteration in the status of the members of the company, made after the commencement of the liquidation shall unless the court otherwise orders, be void.258. Listed company under insolvency proceedings to notify Capital Markets Authority
Where insolvency proceedings are commenced against a company which is listed on any stock exchange, the company shall within fourteen working days notify the Capital Markets Authority in writing of the fact of the commencement of the proceedings.259. General penalty
Any person who commits an offence under this Act, for which no other penalty is specifically provided, is on conviction liable, to a fine not exceeding twenty four currency points or imprisonment not exceeding two years and shall, in addition, pay a default fine.260. Regulations
261. Minister’s power to amend Schedules
The Minister may, with the approval of Cabinet, by statutory instrument, amend the Schedules.262. Repeal
The following enactments are repealed—263. Transitional provisions
Where any case, relating to receivership, liquidation or bankruptcy, was pending before the court prior to the coming into force of this Act, that case shall continue to be heard by that court until completion.264. Saving of rules of equity and common law
The rules of equity and common law applicable to corporate insolvency and bankruptcy of individuals and receivership shall continue in force except as they are inconsistent with this Act.History of this document
01 July 2013
Commenced by
Insolvency Act, 2011 (Commencement) Instrument, 2013
23 September 2011 this version
08 August 2011
Assented to