Special administration order
Open ↗28.—(1) A special administration order is an order of the Minister made in accordance with section 29 in relation to an electricity licensee directing that, during the period for which the order is in force, all or any of the affairs, business and property of that electricity licensee is to be managed directly or indirectly by the Authority —(a)
for securing one or more of the purposes of such an order set out in subsection (2); and
(b)
in a manner which protects the respective interests of the shareholders and creditors of that electricity licensee.[42/2018]
(2) The purposes referred to in subsection (1)(a) are —(a)
the security and reliability of the supply of electricity to the public;
(b)
the survival of the electricity licensee, or the whole or part of its business for which it is authorised by its licence to carry on, as a going concern;
(c)
the transfer to another company, or (as respects different parts of the area to which the electricity licensee’s licence relates, or different parts of its business or undertaking) to 2 or more different companies, as a going concern, of such of the electricity licensee’s undertakings as it is necessary to transfer in order to ensure that the functions and duties which have been vested in the electricity licensee by virtue of its licence may be properly carried out; or
(d)
the carrying out of the functions and duties which have been vested in the electricity licensee pending the making of the transfer and the vesting of those functions and duties in other company or companies.
(3) The Minister may make regulations —(a)
for giving effect to this section and section 29, including regulations governing the transfer of the electricity licensee’s business or undertaking referred to in subsection (2)(c); and
(b)
where a special administration order is made, for applying, omitting or modifying the provisions of Parts 7 and 9 of the Insolvency, Restructuring and Dissolution Act 2018.[40/2018]
[Act 37 of 2021 wef 29/01/2022]
Power to make special administration order, etc.
Open ↗29.—(1) If, on an application made to the Minister by the Authority, the Minister is satisfied in relation to any electricity licensee that any one or more of the grounds specified in subsection (2) are satisfied in relation to that electricity licensee, the Minister may make any one or more of the following orders:(a)
a special administration order in relation to that electricity licensee;
(b)
an order requiring the electricity licensee immediately to take any action or to do or not to do any act or thing in relation to that part of its business or undertaking to which its electricity licence relates as the Minister may consider necessary;
(c)
an order appointing a person to advise the electricity licensee in the proper conduct of that part of its business or undertaking to which its electricity licence relates.
(2) The grounds referred to in subsection (1) are —(a)
the electricity licensee is or is likely to be unable to pay its debts;
(b)
the occurrence of a public emergency;
(c)
the Minister considers it in the interest of the security and reliability of supply of electricity to the public; or
(d)
the Minister considers it in the public interest.
(3) Notice of any application under subsection (1) must be given immediately by the Authority to such persons and in such manner as may be determined by the Authority.
(4) Any order made by the Minister under subsection (1) must be published in such manner as will secure adequate publicity.
(5) Any decision of the Minister under subsection (1) is final.
(6) For the purposes of this section, an electricity licensee is unable to pay its debts if —(a)
where the electricity licensee is a company incorporated under the Companies Act 1967 — it is deemed to be unable to pay its debts under section 125(2) of the Insolvency, Restructuring and Dissolution Act 2018; or
(b)
where the electricity licensee is a variable capital company incorporated under the VCC Act — it is deemed to be unable to pay its debts under —(i)
the repealed section 254(2) of the Companies Act 1967 as applied by section 130 of the VCC Act as in force before the operative date; or
(ii)
section 125(2) of the Insolvency, Restructuring and Dissolution Act 2018, as applied by section 130 of the VCC Act as in force on the operative date.[S 26/2022 wef 13/01/2022]
(7) Despite any written law —(a)
an electricity licensee must not be wound up voluntarily without the consent of the Authority;
(b)
no judicial manager may be appointed under Part 7 of the Insolvency, Restructuring and Dissolution Act 2018 in relation to an electricity licensee without the consent of the Authority;
(c)
no step may be taken by any person to enforce any security over an electricity licensee’s property, except where that person has served on the Authority 14 days’ notice of that person’s intention to take that step;
(d)
no step may be taken by any person to enforce a judgment or order of court obtained against an electricity licensee, except where that person has served on the Authority 14 days’ notice of that person’s intention to take that step; and[Act 25 of 2021 wef 01/04/2022]
(e)
no application under section 210 of the Companies Act 1967 or section 71 of the Insolvency, Restructuring and Dissolution Act 2018 may be made by any person in relation to an electricity licensee, unless that person has served 14 days’ written notice of that person’s intention to make the application on the Authority.[40/2018; 42/2018]
(8) The Authority must be a party to —(a)
any proceedings under the Insolvency, Restructuring and Dissolution Act 2018 or Part 11 of the VCC Act relating to the winding up of the affairs of an electricity licensee; or[S 26/2022 wef 13/01/2022]
(b)
any proceedings relating to the making of an order under section 210 of the Companies Act 1967 or section 71 of the Insolvency, Restructuring and Dissolution Act 2018 in relation to an electricity licensee.[40/2018]
(9) In this section, unless the context otherwise requires —“operative date” means the date of commencement of section 48 of the Variable Capital Companies (Miscellaneous Amendments) Act 2019;
“VCC” has the meaning given by section 2(1) of the VCC Act;
“VCC Act” means the Variable Capital Companies Act 2018.[S 26/2022 wef 13/01/2022]
Remuneration and expenses of Authority and others
Open ↗30.—(1) Where a special administration order has been made under section 29(1)(a), the Authority may, at any time, whether or not the order is still in force, fix the remuneration and expenses to be paid by the electricity licensee to the Authority.
(2) The Authority may at any time (whether or not the appointment of the person has terminated) fix the remuneration and expenses to be paid by an electricity licensee to any person appointed by the Minister under section 29(1)(c) to advise the electricity licensee in the proper conduct of the business or undertaking to which its electricity licence relates.
