Section 338, The Companies Act, 2009

(1) Where a receiver or manager of the whole orsubstantially the whole of the property of a company (hereafter in this section and in section 337, referred to as “the receiver”) has been appointed on behalf of the holders of any debentures of the company secured by a floating charge, then subject to the provisions of this section and of section 340– (a) the receiver shall forthwith send notice to the company of his appointment and the terms; and (b) there shall, within 14 days after receipt of the notice or such longer period as may be allowed by the court or by the receiver, be made out and submitted to the receiver in accordance with section 340, a statement in the prescribed form as to the affairs of the (c) the receiver shall, within 2 months after receipt of the statement send– (i) to the Commission or to the court a copy of the statement and of any comments he sees fit to make thereon and in the case of the Commission also a summary of the statement and of his comments if any on it; (ii) to the company a copy of such comments or if he does not see fit to make any comment, a notice to that effect; and (iii) to any trustees for the debenture holder on whose behalf he has been appointed and, so far as he is aware of their addresses, to all such debenture holders a copy of the summary. (2) The receiver shall, within 2 months, or such longer period as the court may allow after the expiration of the period of 12 months from the date of his appointment and of every subsequent period of 12 months, and within 2 months or such longer period as the court may allow after he ceases to act as receiver or manager of the property of the debenture holder of the company, send to- (a) the Commission, (b) any trustees for the debenture holders of the company on whose behalf he was appointed; (c) the company; and (d) so far as he is aware of their addresses to all such debenture holders, an abstract in the prescribed form showing his receipts and payments during that period of 12 months, or, where he ceases to act as a receiver during the period from the end of the period to which the last preceding abstract relate up to the date of his so ceasing, and the 254 255 Notice of appointment. Liabilities of receivers managers on contracts. aggregate amounts of his receipts and of his payments during all preceding periods since his appointment. (3) Where the receiver is appointed under the powers contained in any instrument, this section shall have effect- (a) with the omission of the references to the court in subsection (1); and (b) with the substitution for the references to the court in subsection (2) of references to the Commission; and in any other case references to the court shall be taken as referring to the court by which the receiver was appointed . (4) Subsection (1) shall not apply in relation to the appointment of a receiver or manager to act with an existing receiver or manager or in place of a receiver or manager dying or ceasing to act, but that where subsection (1) applies to a receiver or manager who dies or ceases to act before it has been fully complied with, the references in paragraphs (b) and (c) of that subsection to the receiver shall, subject to subsection (5), include references to his successors and to any continuing receiver or manager. (5) Nothing in subsection (4) shall be taken as limiting the meaning of the expression “the receiver” where used in, or in relation to, subsection (2). (6) This section and section 340, where the company is being wound up, shall apply notwithstanding that the receiver or manager and the liquidator are the same person. (7) Nothing in subsection (2) shall prejudice the duty of the receiver to render proper accounts of his receipts and payments to the person to whom, and at the time at which he may be required to do so apart from that subsection. (8) If the receiver defaults in complying with the requirements of this section, he shall be guilty of an offence and be liable to a fine of Le.500,000 for each day during which the default continues.