Horwath Bastow Charleton is pleased to offer free representation at creditors meetingsto any individual or organisation wishing to avail of the service. This free service includes:
- attending the creditors’ meeting on your behalf or accompanying you;
- raising matters concerning your debt at the creditors’ meeting;
- preparing a full report on the creditors’ meeting;
- assistance with making a valid reservation of title claim (if applicable);
- liaising with the liquidator if required; and
- assistance in reporting any grievances or suspected breaches of the Companies Acts to the Office of the Director of Corporate Enforcement ("ODCE") and / or the appointed liquidator.
Creditors are able to elect their choice of liquidator on the basis of a majority of votes measured by value of claim only. This gives power and choice of appointment of the liquidator to the creditor. In certain circumstances, this may improve your chances of ensuring your grievances are properly investigated.
The benefit of using this service is ensuring your interests are represented at the meeting by someone experienced in insolvency matters who may, in certain circumstances, be able to improve your chances of receiving a dividend.
The Companies Acts states that ten days notice of the meeting must be given to all creditors. The notice sent to creditors, should be accompanied by a general proxy and a special proxy in the prescribed forms. Where a company or partnership wishes to be represented at the creditors meeting the proxy form must be completed correctly and returned by the time specified in the notice.
The Companies Acts also provide that the meeting must be advertised at least ten days before the meeting in at least two daily newspapers “circulating in the district where the registered office or principal place of business of the company is situated”.
The agenda for a typical creditors meeting is to:
- present a Statement of Affairs to the creditors;
- give the creditors an opportunity to make enquiries of the directors;
- give the creditors an opportunity to appoint their choice of liquidator; and
- give creditors the opportunity to appoint a Committee of Inspection.
The directors of the company are obliged to present a Statement of Affairs. The Statement of Affairs generally shows the book value of the company’s assets together with their realisable value. The Statement of Affairs should also have a list of the company’s creditors and the amount of each claim.
