---------------------------------------------------------------------------------------------- INSOLVENCY LAW DIFC LAW No.7 of 2004 ---------------------------------------------------------------------------------------------- CONTENTS PART 1: GENERAL.......................................................................................................................................1 1. Title .......................................................................................................................................................1 2. Legislative Authority.............................................................................................................................1 3. Application of the Law..........................................................................................................................1 4. Date of enactment..................................................................................................................................1 5. Commencement.....................................................................................................................................1 6. Interpretation .........................................................................................................................................1 7. Administration by the Registrar ............................................................................................................1 PART 2: COMPANY VOLUNTARY ARRANGEMENTS........................................................................2 8. Company arrangements.........................................................................................................................2 9. Moratorium............................................................................................................................................2 10. Summoning of meetings........................................................................................................................2 11. Decisions of meetings ...........................................................................................................................2 12. Effect of approval..................................................................................................................................3 13. Implementation of proposal...................................................................................................................3 PART 3: RECEIVERSHIP ............................................................................................................................5 14. Powers of receivers and administrative receivers..................................................................................5 15. Notification that receiver appointed ......................................................................................................5 16. Interaction of receivers..........................................................................................................................5 17. No duty to enquire as to power of administrative receiver....................................................................6 18. Power to dispose of charged property ...................................................................................................6 19. Agency and liability for contracts .........................................................................................................6 20. Vacation of office..................................................................................................................................6 21. Report by administrative receiver .........................................................................................................6 22. Committee of creditors..........................................................................................................................7 PART 4: WINDING UP .................................................................................................................................8 CHAPTER 1 - GENERAL .............................................................................................................................8 23. Alternative modes of winding up ..........................................................................................................8 24. Regulations............................................................................................................................................8 25. Powers of liquidator ..............................................................................................................................8 CHAPTER 2 - VOLUNTARY WINDING UP .............................................................................................9 26. Circumstances in which a Company may be wound up voluntarily .....................................................9 27. Notice of resolution to wind up.............................................................................................................9 28. Commencement of winding up .............................................................................................................9 29. Effect on business and status of Company ............................................................................................9 30. Avoidance of share transfers after winding-up resolution.....................................................................9 31. Statutory declaration of solvency ........................................................................................................10 32. Distinction between "members'" and "creditors'" voluntary winding up ............................................10 33. Appointment of liquidator ...................................................................................................................10 34. General Company meeting at each year's end.....................................................................................10 35. Final meeting prior to dissolution........................................................................................................10 1 36. Effect of Company's insolvency..........................................................................................................11 37. Conversion to creditors' voluntary winding up ...................................................................................11 CHAPTER 3 - CREDITORS' VOLUNTARY WINDING UP .................................................................11 38. Application of this Chapter .................................................................................................................11 39. Meeting of creditors ............................................................................................................................11 40. Appointment of liquidation committee ...............................................................................................12 41. Directors' powers.................................................................................................................................12 42. Vacancy in office of liquidator............................................................................................................12 43. Meetings of Company and creditors at each year's end.......................................................................12 44. Final meeting prior to dissolution........................................................................................................12 CHAPTER 4 - PROVISIONS APPLYING TO BOTH KINDS OF VOLUNTARY WINDING UP ....13 45. Distribution of Company's property ....................................................................................................13 46. Appointment or removal of liquidator by the Court............................................................................13 47. Reference of questions to Court ..........................................................................................................13 48. Expenses of voluntary winding up ......................................................................................................13 49. Saving for certain rights ......................................................................................................................13 CHAPTER 5 – COMPULSORY WINDING UP........................................................................................13 50. Circumstances in which Company may be wound up by the Court....................................................13 51. Definition of inability to pay debts......................................................................................................14 52. Application for winding up .................................................................................................................14 53. Petition for winding up on grounds of interests of the DIFC ..............................................................14 54. Voiding of property dispositions.........................................................................................................14 55. Voiding of attachments .......................................................................................................................14 56. Consequences of winding-up order.....................................................................................................14 57. Investigation procedures......................................................................................................................14