Committee Flashcards
How many can serve
3-5
When do you inform creditors of their right to form a committee?
Every time they are contacted (in circular format)
When does the committee come in force?
When the notice of membership is sent to OR and Court.
Must be signed and authenticated
Who is the Chair?
IP / experienced employee
What is the Quorum?
2
How do you remove member?
Meeting of creditors 14 days notice
How do they cast votes?
1 vote each
What is the restriction on reports?
Cannot force more than every 2 months. No agreement = 6 months
What expenses can be claimed?
Reasonable travelling expenses
When is the first meeting?
Within 6 weeks of establishment
What is discussed at 1st meeting?
- IP informs of reporting duties
- establishes requirements for committee to be reported to
- Provides a copy of their bond
- Hand out SIP 15, SIP 2 and SIP 9
- Agree meeting frequency / dates / times
When can subsequent meeting be held?
Requested by creditor, held within 21 days of request
IP to give 5 days notice of meeting unless waived
What issues could arise
- Member cannot have a financial interest in estate e.g. purchase assets without sanction of committee or Court
- Membership is terminated if
- miss 3 consecutive meetings
- no longer a creditor
- cease to be eligible
- bankrupt / DRO
How can a vacancy be filled?
By consent of committee or by decision procedure
What does T have to notify to committee?
- Employment of solicitor
- Disposal of assets
- Needs consent to enable B to trade
