Creditors’ meetings may be held in complex bankruptcies or liquidations.
Meetings may be called if the Official Assignee considers the creditors:
- may be able to help investigate the actions of a bankrupt or company in liquidation
- may be able to identify new assets
- will be able to assist in making decisions.
Creditors’ meetings are not common. They are only held if the meeting is likely to assist in the administration of the estate, not so creditors can harass the bankrupt person or company director.
Bankruptcy creditors’ meetings
Creditors’ meetings are only held if there are particular issues that need to be discussed with creditors. If necessary, the Official Assignee will call a meeting within 25 days of the start of a bankruptcy.
When the first report is sent out to creditors, you can request a meeting in writing within ten working days. You need to explain why you think a creditors’ meeting would benefit the administration of the bankruptcy.
To call a meeting, the Official Assignee notifies the bankrupt person and all of the known creditors. Creditors will also receive a summary of the bankrupt person's statement of assets and liabilities and explanation of the causes of the bankruptcy.
If there have been any resolutions put forward to vote on, you will also be sent voting papers with instructions and timeframes for returning them.
At least one creditor needs to attend the meeting along with the Official Assignee for the meeting to be valid. The chairperson (usually the Official Assignee) can adjourn the meeting if required.
As a creditor, you can attend the meeting yourself or be represented by your lawyer, accountant or authorised agent.
Resolutions might be passed during the meeting. Example resolutions could include the decision to appoint an expert or committee to assist the Official Assignee with the bankruptcy.
Liquidation creditors' meetings
Creditors’ meetings are only held if there are particular issues that need to be discussed with creditors.
The Official Assignee can call a creditors’ meeting. The timeframes for this will vary depending on whether the liquidation was voluntary or ordered by the Court.
When the first report is sent out to creditors, you can request a meeting in writing within ten working days. You need to explain why you think a creditors’ meeting would benefit the administration of the liquidation.
A liquidation creditors’ meeting is normally held to let creditors to decide whether to appoint a new liquidator or a liquidation committee.
To call a meeting, the Official Assignee notifies all of the known creditors and also advertises the meeting.
Voluntary Administration creditors' meetings
The Official Assignee does not act as administrator of Voluntary Administrations (VA).
When a company is placed in VA, at least two creditors’ meetings are required. These are called by the administrator, who must also advertise the meetings.
The first meeting must be held within eight working days of the administrator’s appointment. The creditors vote on whether a creditors’ committee should be appointed, and whether to replace or keep the administrator. The administrator must disclose in writing whether they have any conflict of interest.
During the second or ‘watershed’ meeting, creditors vote on the future of the company. This meeting is usually held within 25 working days of the appointment of administrator. Company directors are required to be at this meeting, unless they are excused. At this meeting, the creditors can:
- choose to accept a deed of company arrangement
- end the VA, or
- put the company into liquidation.