PART 17CREDITORS' AND LIQUIDATION COMMITTEES

CHAPTER 3Membership and formalities of formation of a committee

Establishment of committees17

1

Where the creditors, or where applicable, contributories, decide that a creditors' or liquidation committee should be established, the convener or chair of the decision procedure F1or convener of the deemed consent process (if not the office-holder) must—

a

as soon as reasonably practicable deliver a notice of the decision to the office-holder (or to the person appointed as office-holder); and

b

where a decision has also been made as to membership of the committee, inform the office-holder of the names and addresses of the persons elected to be members of the committee.

2

Before a person may act as a member of the committee that person must agree to do so.

3

A person's proxy-holder attending a meeting establishing the committee or, in the case of a corporation, its duly appointed representative, may give such agreement (unless the proxy or instrument conferring authority contains a statement to the contrary).

4

Where a decision has been made to establish a committee but not as to its membership, the office-holder must seek a decision from the creditors (about creditor members of the committee) and, where appropriate in a winding up by the court, a decision from contributories (about contributory members of the committee).

F25

The committee is not established (and accordingly cannot act) until the office-holder has sent a notice of its membership in order to comply with paragraph (9) or (10).

6

The notice must contain the following—

a

a statement that the committee has been duly constituted;

b

identification details for any company that is a member of the committee;

c

the full name and address of each member that is not a company.

7

The notice must be authenticated and dated by the office-holder.

8

The notice must be delivered as soon as reasonably practicable after the minimum number of persons required by rule 17.3 have agreed to act as members and been elected.

9

Where the notice relates to a liquidation committee or a creditors' committee other than in a bankruptcy the office-holder must, as soon as reasonably practicable, deliver the notice to the registrar of companies.

10

Where the notice relates to a creditors' committee in a bankruptcy the office-holder must, as soon as reasonably practicable—

a

in bankruptcy proceedings based on a petition file the notice with the court; and

b

in bankruptcy proceedings based on a bankruptcy application deliver the notice to the official receiver.