ACT 125

COMPANIES ACT 1965 (REVISED - 1973)

PART X - WINDING UP

DIVISION 2 - WINDING UP BY THE COURT

Subdivision (3) - Committees of Inspection

Section 242. Constitution and proceedings of committee of inspection.

(1) The committee of inspection shall consist of creditors and contributories of the company or persons holding— (a) general powers of attorney from creditors or contributories; or (b) special authorities from creditors or contributories authorizing the persons named therein to act on such a committee, appointed by the meetings of creditors and contributories in such proportions as are agreed or in case of difference as are determined by the Court. (2) The committee shall meet at such times and places as they from time to time appoint, and the liquidator or any member of the committee may also call a meeting of the committee as he thinks necessary. (3) The Committee may act by a majority of their members present at a meeting, but shall not act unless a majority of the committee is present. (4) A member of the committee may resign by notice in writing signed by him and delivered to the liquidator. (5) If a member of the committee becomes bankrupt or assigns his estate for the benefit of his creditors or makes an arrangement with his creditors pursuant to any written law relating to bankruptcy or is absent from five consecutive meetings of the committee without the leave of those members who together with himself represent the creditors or contributories, as the case may be, his office shall thereupon become vacant. (6) A member of the committee may be removed by an ordinary resolution at a meeting of creditors, if he represents creditors, or of contributories, if he represents contributories, of which meeting seven days' notice has been given stating the object of the meeting. (7) A vacancy in the committee may be filled by the appointment by the committee of the same or another creditor or contributory or person holding a general power or special authority as specified in subsection (1). (8) The liquidator may, at any time of his own motion and shall, within seven days after the request in writing of a creditor or contributory, summon a meeting of creditors or of contributories, as the case requires, to consider any appointment made pursuant to subsection (7) and the meeting may confirm or revoke the appointment and appoint another creditor or contributory or person holding a general power or special authority as specified in subsection (1), as the case requires, in his stead. (9) The continuing members of the committee if not less than two may act notwithstanding any vacancy in the committee.