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Do I have to attend the creditors meeting?

The Quick Answer

If you are a company director and are the proposed chairperson of the creditors meeting then yes you do have to attend the meeting. Normally all directors are asked to attend the creditors meeting (if there is one in person or online) to explain what happened and answer reasonable questions from creditors.

The answer in more detail

The rule about creditors meetings changed on the 6th April 2017. Since then, as proposed liquidators, we cannot automatically call a physical (in person) meeting of creditors.

We will either notify creditors of a deemed consent liquidation (no proposed meeting at all) or call a virtual meeting of creditors (so online by video such as Teams, Zoom or Google Meet).

In the case of a deemed consent liquidation there is no meeting at all and on the allotted day the company is deemed to go into liquidation at 11.59pm at night. Obviously, this is a lot less stressful for the directors. This new rule was brought in because so many creditors meetings were held and no one attended them.

However, in the case of a deemed consent liquidation creditors can request that a meeting is held. This needs to be requested by 10% of the creditors by number, 10% by overall value or 10 creditors.

At the meeting in person or online the directors have to explain the company history, its financial troubles and answer reasonable questions from creditors.

The meeting may also be called by creditors to propose a different liquidator.

If you are worried about a creditors meeting or would like one to be called, please get in touch with me.

tip

If you need insolvency advice the earlier you talk to someone like us the better as you will have more options. We can help, contact us today.

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Author: David Kirk - ACA FABRP
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David Kirk

Licensed Insolvency Practitioner