Section 28 Conversion to creditors’ voluntary winding upI1

For Article 82 (conversion to creditors’ voluntary winding up) substitute—

“Conversion to creditors’ voluntary winding up

82.

(1)

The winding up becomes a creditors’ voluntary winding up as from the day on which—

(a)

the company’s creditors under Article 81 nominate a person to be liquidator, or

(b)

the procedure by which the company’s creditors were to have made such a nomination concludes without a nomination having been made.

(2)

As from that day, this Order has effect as if the directors’ declaration under Article 75 had not been made.

(3)

The liquidator in the creditors’ voluntary winding up is to be the person nominated by the company’s creditors under Article 81 or, where no person has been so nominated, the existing liquidator.

(4)

In the case of the creditors nominating a person other than the existing liquidator, any director, member or creditor of the company may, within 7 days after the date on which the nomination was made by the creditors, apply to the High Court for an order either—

(a)

directing that the existing liquidator is to be liquidator instead of or jointly with the person nominated by the creditors, or

(b)

appointing some other person to be liquidator instead of the person nominated by the creditors.

(5)

Where the holder of a qualifying floating charge in respect of the company’s property (within the meaning of paragraph 15 of Schedule B1) makes an application under paragraph (4), the High Court must grant the application unless the Court thinks it right to refuse it because of the particular circumstances of the case.

(6)

The “existing liquidator” is the person who is liquidator immediately before the winding up becomes a creditors’ voluntary winding up.”.