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.