Section 319 — General provisions as to liquidators

(1) The official liquidator
shall conduct the proceedings in winding up the company and perform such duties
in reference thereto as the Court may impose.

(2) The acts of a liquidator shall be valid, notwithstanding any defect
that may afterwards be discovered in his appointment or qualification:

Provided that nothing in this sub-section shall be deemed to give validity to
acts done by a liquidator after his appointment has been shown to be invalid.

(3) The winding up proceedings shall be completed by the official
liquidator within a period as determined by the Court under section 322.

(4) If an official liquidator is convicted of misfeasance, or breach of
duty or other lapse or default in relation to winding up proceedings of a company,
he shall cease to be the official liquidator of the company and shall also become
disqualified, for a period of five years from such conviction, from being the
liquidator or to hold any other office including that of a director, in any company
and if he already holds any such office he shall forthwith be deemed to have ceased
to hold such office.

(5) The registrar or the Commission shall take cognizance of any lapse,
delay or other irregularity on the part of the offic ial liquidator and may, without
prejudice to any other action under the law, report the same to the Court.