When is an Annual Meeting Appropriate for a Creditors’ Voluntary Liquidation?
Before 6 April 2010, annual meetings would still occur if a creditors voluntary liquidation had been going on for more than one year. The Legislative Reform (Insolvency) (Miscellaneous Provisions) Order 2010, however, changed that by removing the requirement for a liquidator to hold annual meetings of members and creditors.
Is this the same for Scottish Law?
There is still a requirement in Scotland Liquidations to convene annual meeting of creditors
Annual Progress Reports during Liquidation
As it stands now the law merely requires the liquidator to issue an annual progress report for each period of one year from the date of appointment until he/she ceases to act. At the end of each yearly period, it is the liquidator’s responsibility to send a copy of the progress report to the company members, it’s creditors, and the registrar of companies, within two months of the anniversary.
What Should be Included in the Progress Reports?
The liquidator is required to include the following:
- details of the court proceedings and number;
- the name, address, number and registered office of the company wanting a CVL,
- details of the Insolvency office holder’s name, address, date of appointment and any changes of office holder;
- details of the remuneration of the office holder
- a statement of the expenses incurred by the officeholder during the period of the
the report, irrespective of whether payment was actually made during that period;d
- details of the progress during the period of the report including a receipts and
- details of any assets that remain to be realised;
- a statement of the creditors’ or members’ rights to request further information, as
explained below, and their right to challenge the office holder’s remuneration and
- any other relevant information for the creditors;
The Right of the Insolvency Practitioner to Call a Meeting
Although scheduled annual meetings are now abolished, the liquidator has the power to convene meetings of creditors at any point during the liquidation. He may also call for a resolution via correspondence or, as a virtual meeting, i.e a conference call.