Section 280 - Disqualification of liquidator

(1) The following persons are not eligible to be appointed or to act as liquidators of a company under this Act:

(a) an infant;

(b) a person found by a court of competent jurisdiction to be a person of an unsound mind;

(c) a body corporate;

(d) a person convicted, whether in Ghana or elsewhere, of an offence involving fraud or dishonesty, or of an offence in connection with the promotion, formation or management of a body corporate; and

(e) an undischarged bankrupt or any other person subject to insolvency proceedings under the Insolvency Act, 2006 (Act 708).

(2) Despite subsection (1), a person convicted of an offence under paragraph (d) of subsection (1) is eligible to be appointed as a liquidator or to act as a liquidator of a company if ten years or more have passed since the end of the sentence.

(3) A director of a company shall not be eligible for appointment as a liquidator of that company.

(4) An auditor of a company shall not be eligible to be appointed as a liquidator in a private liquidation of that company.

(5) An appointment made in contravention of this section is void.

(6) Where a person named in paragraph (a), (c), (d), or (e) of subsection (1) or in subsection (2) acts as liquidator of a company, that person commits an offence and is liable on summary conviction to a fine of not less than three hundred and twenty-five penalty units and not more than seven hundred and fifty penalty units or in the case of an individual to a fine of not less than three hundred and twenty-five penalty units and not more than seven hundred and fifty penalty units or to a term of imprisonment of not less than two years and not more than five years or to both the fine and the imprisonment.