Companies Act Section 287 — Advisory committee
CHAPTER XX WINDING UP
Commercial / Corporate
Summary
Sub-section (1) allows the Tribunal, when it orders a company to be wound up, to set up an advisory committee. This committee's job is to advise the Company Liquidator and to report to the Tribunal on matters the Tribunal specifies.
Sub-section (2) states that the advisory committee appointed by the Tribunal can have no more than twelve members. These members are to be creditors and contributories of the company, or other persons, in whatever proportion the Tribunal decides, based on the circumstances of the company being wound up.
Sub-section (3) requires the Company Liquidator to call a meeting of the company's creditors and contributories, as identified from the company's books and documents, within thirty days of the winding-up order. This meeting is held so the Tribunal can decide who should be on the advisory committee.
Sub-section (4) gives the advisory committee the right to inspect the company's books of account, other documents, assets, and properties at a reasonable time while the company is being wound up.
Sub-section (5) says that the rules about calling meetings, the procedure to be followed at those meetings, and other matters related to how the advisory committee conducts its business will be as prescribed.
Sub-section (6) provides that the Company Liquidator will chair the advisory committee's meetings.
Official Text
(1) The Tribunal may, while passing an order of winding up of a company, direct that there shall be, an advisory committee to advise the Company Liquidator and to report to the Tribunal on such matters as the Tribunal may direct.
(2) The advisory committee appointed by the Tribunal shall consist of not more than twelve members, being creditors and contributories of the company or such other persons in such proportion as the Tribunal may, keeping in view the circumstances of the company under liquidation, direct.
(3) The Company Liquidator shall convene a meeting of creditors and contributories, as ascertained from the books and documents, of the company within thirty days from the date of order of winding up for enabling the Tribunal to determine the persons who may be members of the advisory committee.
(4) The advisory committee shall have the right to inspect the books of account and other documents, assets and properties of the company under liquidation at a reasonable time.
(5) The provisions relating to the convening of the meetings, the procedure to be followed thereat and other matters relating to conduct of business by the advisory committee shall be such as may be prescribed.
(6) The meeting of advisory committee shall be chaired by the Company Liquidator.