Section 38 Functions of official receiver in relation to office of liquidatorI1

Article 116 (functions of official receiver in relation to office of liquidator) is amended as follows.

In paragraph (4), for “summon separate meetings of” substitute “in accordance with the rules seek nominations from”.

For paragraphs (5) and (6) substitute—

“(5)

It is the duty of the official receiver—

(a)

as soon as practicable within the period of 12 weeks from the day on which the winding-up order was made, to decide whether to exercise his power under paragraph (4),

(b)

if in pursuance of sub-paragraph (a) he decides not to exercise that power, to give notice of his decision, before the end of that period, to the High Court and to the company’s creditors and contributories, and

(c)

(whether or not he has decided to exercise that power) to exercise his power under paragraph (4) if he is at any time requested, in accordance with the rules, to do so by one-quarter, in value, of the company’s creditors.

(6)

A notice under paragraph (5)(b) to the company’s creditors must contain an explanation of the creditors’ power under paragraph (5)(c) to require the official receiver to seek nominations from the company’s creditors and contributories.

(7)

Where the creditors exercise their power under paragraph (5)(c) before the official receiver has performed the duty under paragraph (5)(a), the duties under paragraph (5)(a) and (b) no longer apply.

(8)

Where the creditors exercise their power under paragraph (5)(c) after the official receiver has performed the duty under paragraph (5)(a) but before he has performed the duty under paragraph (5)(b), the duty under paragraph (5)(b) no longer applies.”.