Sign inSign upSign in
Menu

Companies and Allied Matters Act 2020 · Part B · Chapter 24

Section 665 Supplies of gas, water, electricity, etc.

(1)
This section applies in the case of a company where—
(a)
the company enters administration ;
(b)
a company voluntary arrangement approved under Chapter 17 has taken effect ;
(c)
the company goes into liquidation ; or
(d)
a provisional liquidator is appointed.
(2)
If a request is made by or with the concurrence of the officeholder for the giving, after the effective date, of any of the supplies mentioned in the next subsection, the supplier—
(a)
may make it a condition of the giving of the supply that the office-holder personally guarantees the payment of any charges in respect of the supply ;
(b)
shall not make it a condition of the giving of the supply, or do anything which has the effect of making it a condition of the giving of the supply, that any outstanding charges in respect of a supply given to the company before the effective date are paid.
(3)
For the purpose of subsection (2), “the officeholder” means the administrator, the nominee, the supervisor, the liquidator or the provisional liquidator, as the case may be.
(4)
The supplies referred to in subsection (2) are a supply of—
(a)
gas by a gas supplier within the meaning of legislation regulating the provision of gas, if applicable ;
(b)
electricity by an electricity supplier within the meaning of legislation dealing with the provision of electricity ;
(c)
water by a water provider refer to legislation if applicable ; and
(d)
communications services by a provider of a public electronic communications service.
(5)
The “effective date” for the purposes of this section, is the date on which the—
(a)
company entered administration ;
(b)
voluntary arrangement took effect ;
(c)
company went into liquidation ; or
(d)
provisional liquidator was appointed.
(6)
In subsection (4) (d), the term, “communications services” does not include electronic communications services to the extent that they are used to broadcast or otherwise transmit programme services within the meaning of the Nigerian Communications Commission Act.
Cite as: Companies and Allied Matters Act 2020, section 665

What this section means

From the guide: Who gets paid first in a winding up under CAMA 2020

  • Suppliers of gas, electricity, water and communications services cannot insist that old debts be paid before continuing supply to the liquidator, though they can require the liquidator’s personal guarantee for new supplies (section 665).

Read the whole subject

Source: Companies and Allied Matters Act 2020 (Act No. 3 of 2020), Official Gazette No. 124, Lagos, 10 August 2020. General information, not legal advice.