Section 243 — Companies Act 1993: Liquidator to summon meeting of creditors

243 Liquidator to summon meeting of creditors (1) Subject to section 245 of this Act and to subsection (8) of this section, the liquidator of a company must call a meeting of the creditors of the company for the purpose,— (a) In the case of a liquidator appointed pursuant to paragraph (a) or paragraph (b) of subsection (2) of section 241 of this Act, of resolving whether to confirm the appointment of that liquidator or to appoint another liquidator in place of the liquidator so appointed: (b) In the case of a liquidator appointed pursuant to paragraph (c) of subsection (2) of section 241 of this Act, of resolving whether to confirm the appointment of that liquidator or to make an application to the Court for the appointment of a liquidator in place of the liquidator so appointed: (c) In either case, of determining whether to pass a resolution for the purposes of section 258(1)(b) of this Act. (1A) If the appointment of a liquidator under paragraph (a) or paragraph (b) of section 241(2) is not confirmed at a meeting of creditors and another liquidator is not appointed in place of that liquidator, the appointment of the liquidator under paragraph (a) or paragraph (b) of section 241(2) continues until another liquidator is appointed. (2) Notice in writing of a meeting of creditors— (a) must be given to every known creditor together with the report and notice referred to in section 255(2)(c) ; and (b) if the liquidator receives a notice under section 245(1)(b)(iii) , must be given within 10 working days after receiving the notice. (3) Public notice of the meeting of creditors must also be given by the liquidator not less than 5 working days before the date of the meeting. (4) Except if subsection (2)(b) applies, a meeting of creditors must be held,— (a) In the case of a liquidator appointed under paragraph (a) or paragraph (b) of subsection (2) of section 241 of this Act, within 10 working days of the liquidator's appointment; or (b) In the case of a liquidator appointed under paragraph (c) of subsection (2) of section 241 of this Act, within 30 working days of the liquidator's appointment; or (c) In either case, within such longer period as the Court may allow. (4A) If subsection (2)(b) applies, a meeting of creditors must be held within 15 working days after the liquidator receives a notice under section 245(1)(b)(iii) requiring a meeting of creditors to be called. (5) Every meeting of creditors must be held in accordance with Schedule 5 to this Act. (6) If at a meeting of creditors it is resolved to appoint a person as liquidator of the company in place of the liquidator appointed pursuant to paragraph (a) or paragraph (b) of subsection (2) of section 241 of this Act, the person who it is resolved to appoint as liquidator shall, subject to section 282 of this Act, be the liquidator of the company. (7) If at a meeting of creditors it is resolved to apply to the Court for the appointment of a person as liquidator in place of the liquidator appointed pursuant to paragraph (c) of subsection (2) of section 241 of this Act, the liquidator of the company must forthwith apply to the Court for the appointment of that person as liquidator and the Court may, if it thinks fit, appoint that person as the liquidator of the company. (8) Nothing in this section applies to the liquidator of a company appointed pursuant to paragraph (a) or paragraph (b) of subsection (2) of section 241 of this Act if, within 20 working days before the appointment of the liquidator, the board of the company resolved that the company would, on the appointment of a liquidator under either paragraph (a) or paragraph (b) of that subsection, be able to pay its debts and a copy of the resolution is delivered to the Registrar for registration. (9) The directors who vote in favour of such a resolution must sign a certificate stating that, in their opinion, the company would, on the appointment of a liquidator under either paragraph (a) or paragraph (b) of subsection (2) of section 241 of this Act, as the case may be, be able to pay its debts, and the grounds for that opinion. (10) Every director who fails to comply with subsection (9) of this section commits an offence and is liable on conviction to the penalty set out in section 373(1) of this Act. (11) Except for subsection (5), this section does not apply if the liquidator is appointed under section 241(2)(d) . Subsection (1)(a) was amended, as from 3 June 1998, by section 9(1)(a) Companies Amendment Act 1998 (1998 No 31) by inserting the words “ to confirm the appointment of that liquidator or ” . Subsection (1)(b) was amended, as from 3 June 1998, by section 9(1)(b) Companies Amendment Act 1998 (1998 No 31) by inserting the words “ to confirm the appointment of that liquidator or ” . Subsection (1A) was inserted, as from 3 June 1998, by section 9(2) Companies Amendment Act 1998 (1998 No 31). Section 243(2): substituted, on 1 November 2007, by section 16 of the Companies Amendment Act 2006 (2006 No 56). Subsection (4) was amended, as from 3 June 1998, by section 9(4) Companies Amendment Act 1998 (1998 No 31) by substituting the words “ Except if subsection (2)(b) applies, ” for the words “ Subject to subsection (2)(b) of this section ” . Subsection (4A) was inserted, as from 3 June 1998, by section 9(5) Companies Amendment Act 1998 (1998 No 31). Section 243(11): added, on 1 November 2007, by section 9 of the Companies Amendment Act 2006 (2006 No 56).