Creditors' voluntary winding up
If no declaration of solvency is filed the winding up must take place under the control of the creditors.
1. Meeting of creditors:
The company must summon a meeting of creditors for the same day or the day following that on which the meeting of members is held to pass the resolution to wind up, by notice to the creditors and by advertisement in the Gazette and a local newspaper. The directors must lay before the creditors' meeting a statement of the company's affairs and a list of creditors, and appoint one of their number as chairman s.286.
2. Appointment of liquidator:
Both the members and creditors (by a majority in number and in value or the creditors voting in person or by proxy) nominate a liquidator. The creditors' choice prevails if they differ, but in this case the court may be asked, within seven days of the nomination, to make the appointment s.287. If the members have nominated a liquidator and the creditors have not met, the liquidator has power to act until his appointment is terminated by the creditors. His remuneration is fixed by the committee of inspection or the creditors s.289 and vacancies are filled by the creditors s.291. Sections 297-299 (see paragraph m 1, 2 above) apply.
3. Committee of inspection:
Both the members and creditors may nominate up to five persons, but the creditors may object to the members' nominees who will not then be able to act unless the court otherwise directs s.288.
4. Further meetings and dissolution:
The position is the same as in a members' winding up, except that meetings of creditors must also be held whenever meetings of members are required ss.293, 294.