Section 42 Liquidation committeeI1

In Article 120 (liquidation committee), for paragraphs (1) to (3) substitute—

“(1)

This Article applies where a winding up order has been made.

(2)

If—

(a)

the company’s creditors decide that a liquidation committee should be established, and

(b)

the company’s contributories also so decide,

a liquidation committee is to be established in accordance with the rules.

(3)

If only the company’s creditors, or only the company’s contributories, decide that a liquidation committee should be established, a liquidation committee is to be established in accordance with the rules unless the court decides otherwise.

(3A)

A “liquidation committee” is a committee having such functions as are conferred on it by or under this Order.

(3B)

The liquidator must seek a decision from the company’s creditors and contributories as to whether a liquidation committee should be established if requested, in accordance with the rules, to do so by one-tenth in value of the company’s creditors.

(3C)

Paragraph (3B) does not apply where the liquidator is the official receiver.”.