The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:
STOP PRESS: From 6 April 2017, the Insolvency Rules 1986, SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. The content in this Q&A may have been affected by this change.
The general power for creditors to requisition creditors’ meetings is set out in section 168(2) of the Insolvency Act 1986 (IA 1986), which requires such requisition to be in writing and supported by one-tenth in value of the creditors. This is supplemented by rule 4.57 of the Insolvency Rules 1986 (IR 1986), SI 1986/1925, which sets out what needs to accompany any request for a creditors’ meeting to be convened.
In a compulsory liquidation, IA 1986, s 172 provides that a liquidator may be removed from office only by an order of the court or by a general meeting of the company’s creditors summoned specifically for that purpose in accordance with IR 1986. However, in deviating from the general provision referred to above, where either of the circumstances set out in IA 1986, s 172(3) apply, any requisitioned meeting must be supported by not less than 25%, in value, of the creditors.
It should be noted that, even if a creditors’ meeting has been properly requisitioned, the liquidator can still refuse to convene the meeting. The creditor(s) would then have to apply to court seeking an order
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