Companies Act Section 354 — Meetings to ascertain wishes of creditors or contributories

CHAPTER XX WINDING UP

Commercial / Corporate

Summary

Sub-section (1) sets out the general powers of the Tribunal in all matters relating to the winding up of a company. Under clause (a), the Tribunal may take into account the wishes of the company's creditors or contributories, provided those wishes are proved to it by sufficient evidence. Under clause (b), if the Tribunal thinks it is appropriate for finding out those wishes, it may direct that meetings of the creditors or contributories be called, held, and conducted in whatever manner the Tribunal decides. Under clause (c), the Tribunal may appoint a person to act as chairman of any such meeting and to report the result of the meeting back to the Tribunal.

Sub-section (2) states that when the Tribunal is ascertaining the wishes of creditors under sub-section (1), it must give weight to the value of each creditor's debt.

Sub-section (3) states that when the Tribunal is ascertaining the wishes of contributories under sub-section (1), it must give weight to the number of votes that each contributory may cast.

Official Text

(1) In all matters relating to the winding up of a company, the Tribunal may—

(a) have regard to the wishes of creditors or contributories of the company, as proved to it by any sufficient evidence;

(b) if it thinks fit for the purpose of ascertaining those wishes, direct meetings of the creditors or contributories to be called, held and conducted in such manner as the Tribunal may direct; and

(c) appoint a person to act as chairman of any such meeting and to report the result thereof to the Tribunal.

(2) While ascertaining the wishes of creditors under sub-section (1), regard shall be had to the value of each debt of the creditor.

(3) While ascertaining the wishes of contributories under sub-section (1), regard shall be had to the number of votes which may be cast by each contributory.