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Appointment of a Liquidator In a CVL

The shareholders nominee as liquidator is replaced by the creditors nomination should the creditors propose the appointment of a different person.

In the creditors meeting the liquidator is appointed following a vote.

Any creditor whose interest is "secured" is unable to vote. Examples of secured creditors can include:

• Banks
• Hire Purchase Creditors
• Factoring Companies

If such "secured" creditors are not, however, fully secured they can vote for the balance owing to them that is unsecured.

The majority in value of creditors voting for a particular Insolvency Practitioner appoints the liquidator.

This shows the power that is held by creditors who are owed large sums of money.

Votes can be cast by creditors by post (using a proxy form) or in person, by attending at the creditors meeting.