OpenLegislation

Rule 4.152 Membership of committeeI1

England and Wales

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

  • rule 4.152(1) substituted by SI 2009/356 rule 115(2) (as amended) by Bank Insolvency 2010 rule 48
  • rule 4.54(5-CVL) substituted for rule 4.54(5) by Insolvency 2010 Sch. 1 para. 179(5)
(1)

Subject to Rule 4.154 below, the liquidation committee shall consist as follows—

(a)

in any case of at least 3, and not more than 5, creditors of the company elected by the meeting of creditors held under section 141 of the Act, and

(b)

also, in the case of a solvent winding up, where the contributories' meeting held under that section so decides, of up to 3 contributories, elected by that meeting.

(NO CVL APPLICATION)

(2-CVL)

The committee must have at least 3 members before it can be established.

(3)

Any creditor of the company (other than one whose debt is fully secured) is eligible to be a member of the committee, so long as—

(a)

he has lodged a proof of his debt, and

(b)

his proof has neither been wholly disallowed for voting purposes, nor wholly rejected for purposes of distribution or dividend.

(4)

No person can be a member as both a creditor and a contributory.

(5)

A body corporate may be a member of the committee, but it cannot act as such otherwise than by a representative appointed under Rule 4.159.

(6)

Members of the committee elected or appointed to represent the creditors are called “creditor members”; and those elected or appointed to represent the contributories are called “contributory members”.

F1(7)

The following categories of person are to be regarded as additional creditor members—

(a)

a representative of the Financial Services Authority who exercises the right under section 371(4)(b) of the Financial Services and Markets Act 2000 to be a member of the committee;

(b)

a representative of the scheme manager who exercises the right under section 215(4) of that Act to be a member of the committee.

Annotations

Textual amendments

F1

Rule 4.152(7) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 379

Commencement

I1

Rule 4.152 in force at 29.12.1986, see rule 0.1