HHH

SECRETARIAL PRACTICE

Committees of Inspection.

Mogiings of a. 198.—(1) When a winding-up order has been made by the court
contributories to in England, it shall be the business of the separate meetings of
determine creditors and contributories summoned for the purpose of deter-
mittee of inspec- Mining whether or not an application should be made to the court
Lion hall pe for appointing a liquidator in place of the official receiver, to deter-
’ mine further whether or not an application is to be made to the
court for the appointment of a committee of inspection to act with
the liquidator and who are to be members of the committee if

appointed.

(2) When a winding-up order has been made by the court in
Scotland, the liquidator shall summon separate meetings of the
creditors and contributories of the company for the purpose of deter-
mining whether or not an application is to be made to the court for
the appointment of a committee of inspection to act with the
liquidator and who are to be the members of the committee if
appointed:

Provided that, where the winding-up order has been made on
the ground that the company is unable to pay its debts, it shall not
be necessary for the liquidator to summon a meeting of the contribu-
tories.

(3) The court may make any appointment and order required
to give effect to any such determinatioii, and if there is a difference
between the determinations of the meetings of the creditors and
contributories in respect of the matters aforesaid the court shall
decide the difference and make such order thereon as the court may
think fit.
Constitution and 199.—(1) A committee of inspection appointed in pursuance of

proceedings of this Act shall consist of creditors and contributories of the company

inspection. or persons holding general powers of attorney from creditors or
contributories in such proportions as may be agreed on by the
meetings of creditors and contributories, or as, in case of difference,
may be determined by the court:

Provided that, where in Scotland a winding-up order has been
made on the ground that a company is unable to pay its debts, the
committeé shall consist of creditors or persons holding general
powers of attorney from creditors.

(2) The committee shall meet at such times as they from time
to time appoint, and, failing such appointment, at least once a
month, and the liquidator or any member of the committee may
also call a meeting of the committee as and when he thinks necessary.

(3) The committee may act by a majority of their members
present at a meeting, but shall not act unless a majority of the
committee are present.

(4) A member of the committee may resign by notice in writing
signed by him and delivered to the liquidator.

(5) If a member of the committee becomes bankrupt, or com-
pounds or arranges with his creditors, or is absent from five con-