In force2020 Revised Edition

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Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 8 · Winding Up

166. Meeting of creditors

(1)

The company must cause a meeting of the creditors of the company to be summoned for the day, or the day next following the day, on which there is to be held the meeting of the company at which the resolution for voluntary winding up is to be proposed, and must cause the notices of the meeting of creditors to be sent to the creditors simultaneously with the sending of the notices of the meeting of the company.

(2)

The company must convene the meeting of the creditors at a time and place convenient to the majority in value of the creditors, and must —

(a)

send notice of the meeting to the creditors at least 10 days before the date of the meeting; and

(b)

send to each creditor, with the notice, a statement showing the names of all creditors and the amounts of their claims.

(3)

The company must cause notice of the meeting of the creditors to be advertised at least 7 days before the date of the meeting in the Gazette and at least one English local daily newspaper.

(4)

The directors of the company must —

(a)

cause a full statement of the company’s affairs showing in respect of assets the method and manner in which the valuation of the assets was arrived at, together with a list of the creditors and the estimated amount of their claims to be laid before the meeting of the creditors; and

(b)

appoint one of their number to attend the meeting.

(5)

The director appointed under subsection (4)(b), and the secretary, must attend the meeting of the creditors and disclose to the meeting the company’s affairs and the circumstances leading up to the proposed winding up.

(6)

The creditors may appoint one of their number, or the director appointed under subsection (4)(b), as the chairperson to preside at the meeting.

(7)

The chairperson must determine at the meeting whether the meeting has been held at a time and place convenient to the majority in value of the creditors, and the chairperson’s decision is final.

(8)

If the chairperson decides that the meeting has not been held at a time and place convenient to that majority, the meeting lapses and a further meeting must be summoned by the company as soon as is practicable.

(9)

If the meeting of the company is adjourned and the resolution for voluntary winding up is passed at an adjourned meeting, any resolution passed at the meeting of the creditors has effect as if the resolution had been passed immediately after the passing of the resolution for voluntary winding up.

(10)

If default is made in complying with this section, the company and any officer of the company who is in default shall each be guilty of an offence and shall each be liable on conviction to a fine not exceeding $2,000.