Creditors meetings
Depending on the type and the particular circumstances of an insolvency case meetings of creditors may be held.
In order to be able to attend a meeting, if the creditor is an entity such as a company a proxy form must be completed and should be sent to the practitioner prior to the meeting. In theory if the creditor is representing themselves then no proxy form is required but it is helpful to inform the practitioner that they wish to attend so that necessary arrangements (e.g. room size) can be made.
The proxy form can be used by creditors who cannot attend but which to vote at the meeting. If this is the case then the proxy holder should put the chairman of the meeting as proxy holder and the sections relating to the resolutions completed.
In order to vote and attend creditors meetings it may be necessary to prove that the creditor is owed money by the entity concerned. As such a proof of debt form normally needs to be completed and sent to the practitioner. In certain circumstances the claim may not be agreed for voting purposes but this would be explained by the practitioner.
Creditors' meetings can be classified into 3 broad categories;
Initial meeting
This meeting is usually held within the first 3 months of an insolvency depending upon the type of insolvency process.
The purpose of this meeting is usually to receive a report on the progress of the case to date and vote on certain resolutions such as:
Appointment of a liquidator or trustee;
Appointing a creditors' committee;
Agreeing the basis of the practitioners' remuneration;
Depending upon the procedure, determining the appropriate way of dealing with the insolvency; and
Depending upon the procedure asking questions of the practitioner and directors of the business.
Annual meetings
These usually involve the practitioner presenting a report on the progress of the case. On occasion resolutions may be taken but these would be communicated prior to the meeting.
In the majority of cases no creditors attend these meetings in person.
Final meetings
At the end of most types of procedures a final meeting is held to receive a final report on the administration of the case. The format of these meetings is usually similar to that of the Annual meetings but resolutions relating to the discharge of the practitioner would be taken or considered.
