The following Restructuring & Insolvency guidance note Produced in partnership with South Square and BDO LLP provides comprehensive and up to date legal information covering:
The Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016) provide a revised scheme for decision-making in all insolvency procedures. The detailed provisions for decision-making are set out in Part 15 of IR 2016, SI 2016/1024. For details of the changes brought about under this Part, see Practice Notes: The Insolvency (England and Wales) Rules 2016—Part 15 and 16: Creditors meetings and proxies [Archived] and The Insolvency (England and Wales) Rules 2016—communications [Archived].
This Practice Note covers the practicalities of constituting the liquidation committee and the creditors’ decision process in liquidation generally. In practice the former type of committee is of great significance in liquidations which are large and complicated (IA 1986, ss 141(1) – 141(4)).
Liquidators may not call a physical meeting of creditors, but must seek decisions by deemed consent or a qualifying decision procedure. Physical meetings can only be held if requested by the relevant majority of creditors under IA 1986, s 246ZE but can be requested by the creditors prior to delivery of the notice of deemed consent or qualifying decision procedure.
In a creditors voluntary liquidation (CVL), the creditors will be notified to provide nominations to form a creditors committee at the same time as the directors request their nomination of a liquidator either through the deemed consent
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