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NOTICE OF CREDITORS MEETING
For a company to be placed into creditors
voluntary liquidation there must be a creditors meeting.
The company must send notices of this
meeting to all creditors, giving 7 days notice.
The company must also advertise this
notice in the following:-
1. The
London Gazette
2. Two
newspapers in the relevant locality (where the company's principal
place of business in Great Britain was situated during the
relevant period).
The meeting must also be held within 14 days of the shareholders
meeting at which time the resolution to wind up the company
was passed.
The notice must include the following
information:-
1. Date,
time and venue of the meeting.
2. Place where and deadline
within which proxies must be deposited if a creditor is to
be able to vote through a proxy at that meeting.
3. Creditors rights to information.
CONDUCT AT THE CREDITORS MEETING
1. A director of the company acts as
Chairman, although the insolvency practitioner most often
"runs" the meeting.
2. A liquidator will have been appointed
at the shareholders meeting which will have taken place immediately
before the creditors meeting.
3. Others who may attend include:-
- creditors
- creditors' representatives
INFORMATION PROVIDED AT THE CREDITORS MEETING
1. A summary of the directors sworn Statement
of Affairs is handed to all those attending the meeting and
an explanation of the contents of that statement is given
verbally.
2. Details are given to attendees of
any prior involvement with the company or its directors of
the proposed liquidator.
3. Confirmation is given of the venue
and date of the shareholders meeting and the date notice of
the EGM was dispatched.
4. Information is provided as to what
resolutions were passed at the shareholders meeting.
5.The dates on which directors signed
notices to call a creditors meeting and the date those notices
were sent out to all creditors are noted.
6. Confirmation of any costs paid by
the company in connection with organising the meeting and
the preparation of the Statement of Affairs are disclosed.
7. A brief report is given of the company's
relevant trading history, including the director's reasons
for failure.
8. Extracts from any audited, or if none,
draft accounts produced for the periods covering the previous
3 years are provided to the meeting together with a deficiency
account.
APPOINTMENT OF LIQUIDATOR
Nominations for appointment of liquidator
are received through proxy vote or alternatively from those
attending the meeting.
A liquidator is appointed by having
a vote of 50% or more of the value of votes cast in favour
of the appointment of a particular person.
In certain circumstances a joint appointment
of liquidators may be sought where appropriate.
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