Section 38: Consequences on the commencement of liquidation proceedings

1) On the commencement of the liquidation proceedings of any company, the following provisions shall govern the following matters in relation to such Company:

(a) Where the director and officer of the Company are relieved of office of the Company are relieved of office, the liquidator shall exercise all such powers as may be exercisable by the director and officer of the Company in relation to the management of that Company,

(b) The liquidator shall take in his or her custody and control all assets, accounts and books of account of the Company, except the properties in possession of secured creditors,

(c) Except as ordered otherwise by the liquidator, the service of all employees appointed by the Company shall terminate.

2) The provision’s relation to ipso facto suspension set forth in Section shall, except for the following matter, apply during the period of currency of liquidation proceedings:

(a) Implementation of the right of secured creditors to execute pursuant to this Act, or

(b) Implementation of the right of the lessor of any property leased to the Company to redeem the property pursuant to this Act.