WINDING UP

235
the Rules, they should be inserted at least seven clear
days before the meeting is held.

The directors must appoint one of their number to
preside at the creditors’ meeting. and the director so
appointed must preside at the meeting.

The directors must prepare and lay before the meeting
a full statement of the position of the company’s
affairs and a list of creditors and the estimated amount
of their claims.

The business of the creditors’ meeting is to be gathered from
ss. 239 and 240. Under s. 239 the creditors may nominate
a liquidator, and under s. 240 they may appoint a committee of
inspection consisting of not more than five persons. If a
resolution is passed at the creditors’ meeting and the general
meeting is adjourned, any resolution passed at the credi-
tors’ meeting will take effect as if passed immediately after
the resolution for winding up [s. 238 (5)]. (For the rules as to
the conduct of such meetings see Rules 132, 134 to 136, and
£38 to 143, and for the rules as to proxies see Rules 144 to 149,
151, 152 and 154).

It will be noted that s. 239 gives the creditors power to
nominate, not to appoint a liquidator. The reason for this
is that the section confers a like power of nomination on the
company exercisable at the meeting at which the resolution
for winding up is passed. If both meetings nominate the
same person or, subject as below mentioned, if they nominate
different persons, the person nominated by the creditors will
be liquidator. If, however, the creditors nominate no one,
the person nominated by the company will be liquidator. If
different persons are nominated by the company and the
creditors, any director, member or creditor, may within seven
days after the date on which the creditors’ nomination was
made, apply to the Court for an order directing that the
company’s nominee be liquidator instead of or jointly with
the creditors’ nominee, or that some third person be appointed
liquidator in place of the creditors’ nominee. It will be
noted that this application cannot be made by the company,
and the applicant will therefore have to bear his costs person-
ally unless the Court otherwise directs. In a creditors’
liquidation, unlike a members’ liquidation, only one person
can be appointed liquidator unless a joint liquidator is
appointed by the Court. Any vacancy in the office of the
liquidator may be filled by the creditors unless the liquidator
was appointed or nominated by the Court [s. 242]. As in a
members’ voluntary winding up, the powers of the directors
can only be exercised after the appointment of a liquidator

4)

Liquidator in
Creditors’
Winding Up.