Liquidation: meetings of creditors and contributories
These are called by the liquidator in a voluntary winding-up. In a winding-up by the court. first meetings of creditors and contributories are summoned by the official receiver one month after the winding-up order, or six weeks where a special manager has been appointed. Notice is given to creditors and members – the notice to creditors gives the latest date for lodging proofs of debts. It also gives a summary of the statement of affairs of the company and reasons for failure. Notice is also given to directors.
Meetings may also be summoned at any time to ascertain the wishes of creditors and contributories. They must be summoned when required by persons holding onetenth (in value) of shares or creditors for one-tenth of the debts.The liquidator must also call meetings to fill vacancies in the committee of inspection. Meetings are summoned with seven days’ notice in the London gazette and one local paper, and by notice to all persons recorded as creditors or contributories. Motions are passed by a majority in number and value. present in person or by proxy. Where there is no definite majority the court will decide. Creditors that have not proved cannot vote, secured creditors can only vote re that part of the debt which is not secured. All resolutions passed at meetings must be filed with the registrar of the court.
Reference: The Penguin Business Dictionary , 3rd edt.