Paragraph 18 Section 301: Creditors' committeeI1

Section 301 is modified so as to read as follows—

“301

(1)

Subject as follows, F1the creditors of the members and of the partnership may establish a committee (known as “the creditors' committee”) to exercise the functions conferred on it by or under this Act.

(2)

F2The creditors of the members and of the partnership shall not establish such a committee, or confer any functions on such a committee, at any time when the official receiver is the trustee, except in connection with F3the appointment of a person to be trustee instead of the official receiver.

Functions and membership of creditors' committee

301A

(1)

The committee established under section 301 shall act as creditors' committee for each member and as liquidation committee for the partnership, and shall as appropriate exercise the functions conferred on creditors' and liquidation committees in a bankruptcy or winding up by or under this Act.

(2)

The rules relating to liquidation committees are to apply (with the necessary modifications and with the exclusion of all references to contributories) to a committee established under section 301.

(3)

Where the appointment of the trustee also takes effect in relation to a further insolvent member under section 293(8) or 296(4), the trustee may appoint any creditor of that member (being qualified under the rules to be a member of the committee) to be an additional member of any creditors' committee already established under section 301, provided that the creditor concerned consents to act.

(4)

The court may at any time, on application by a creditor of any member or of the partnership, appoint additional members of the creditors' committee.

(5)

If additional members of the creditors' committee are appointed under subsection (3 or (4), the limit on the maximum number of members of the committee specified in the rules shall be increased by the number of additional members so appointed.”.