Companies (Rescue Process for Small and Micro Companies) Act 2021

Amendment of section 666 of Principal Act

9. Section 666 of the Principal Act is amended—

(a) by the substitution of the following subsection for subsection (1):

“(1) (a) When a winding-up order has been made by the court, the liquidator shall inform the creditors of the company of their power to appoint a committee of inspection under this section.

(b) When a winding-up order has been made by the court, the liquidator may and, if directed to do so by a creditor or creditors representing not less than one-tenth in value of the creditors of the company shall, summon a meeting of the creditors of the company for the purpose of determining—

(i) whether or not a committee of inspection is to be appointed, and

(ii) who are to be the members of the committee if so appointed.”,

(b) in subsection (2), by the substitution of “Subject to subsection (2A), at a meeting” for “At a meeting”,

(c) by the insertion of the following subsection after subsection (2):

“(2A) Where the employees of the company elect or appoint one of their number as an employees’ representative for the purpose of serving on any committee of inspection referred to in subsection (2), the person so elected or appointed shall be one of the persons appointed under that subsection.”,

and

(d) by the insertion of the following subsection after subsection (6):

“(7) If a liquidator, without reasonable excuse, fails to comply with subsection (1)(a), he or she shall be guilty of a category 4 offence.”.