- Laws of Fiji

Last Updated: 24 June 2022

[COM 511] Investment of surplus funds and Companies Contingency Fund511

511

(1) Whenever the cash balance standing to the credit of the Companies Liquidation Account during the period of liquidation, is in excess of the amount, which, in the opinion of the Official Receiver, is required for the time being to answer demands in respect of companies’ estates, the Official Receiver may invest the amount not so required, or any part, in any investment authorised by law for the investment of trust funds or may place the same, or any part, on fixed deposit with a financial institution licensed under the Banking Act 1995, or such other financial institution as may be prescribed by regulations made under this Act.

(2) Whenever any part of the money so invested or placed on deposit is, in the opinion of the Official Receiver, required to answer any demand in respect of companies’ estates, the Official Receiver shall raise such sums as may be required by the sale of such part of the said securities or by withdrawing such amount from deposit as may be necessary and shall repay such sums to the Companies Liquidation Account.

(3) The dividends and interest accruing from any money so invested or placed on deposit shall be paid by the Official Receiver to the credit of a separate account, to be called the “Companies Contingency Fund” to be kept by the Official Receiver at a financial institution licensed under the Banking Act 1995, or such other financial institution as may be prescribed by regulations made under this Act.

(4) Where it appears that it is in the public interest so to do, and that other funds are not available or properly chargeable, the court may, on the application of the Registrar or of the Official Receiver, authorise the Registrar or the Official Receiver to use money from the Companies Contingency Fund to meet expenditure which the court considers to be necessary or advisable to incur for the purpose of enabling the Registrar or the Official Receiver, as the case may be, to carry out more efficiently the provisions of, and their duties under, this Act, and, without prejudice to the generality of the foregoing, for the purpose of enabling the Registrar to meet any indemnity or to pay any expenses which the Registrar is required, by this Act, to meet or to pay.

(5) Where an application is made by the Registrar under subsection (4), the court shall consult the Official Receiver before granting the application and, if the application is granted, then the Official Receiver must pay to the Registrar, out of the Companies Contingency Fund, the amount authorised by the court.