Meeting of creditors
A first meeting of creditors is held so that the creditors can appoint an Insolvency Practitioner (IP) as trustee in place of the Official Receiver (OR).
This is likely to be the only meeting of creditors before the final meeting is called. If the OR does not believe the assets available are enough to attract an IP, the OR will send notice to all creditors that no first meeting is to be held and as a result the OR will remain trustee.
The OR must hold a first meeting if it is requested by one quarter in value of the creditors. If the creditors request a meeting, they will have to lodge a deposit for the costs of the meeting with the OR. If the creditors do not choose an IP, the OR can either:
- apply to the Department of Enterprise, Trade and Investment asking it to make an appointment, or
- remain as trustee himself.
The OR can also apply to the Department of Enterprise, Trade and Investment when an appointment of an IP is needed in an emergency, for example to deal with urgent transactions involving assets. When this happens the IP must notify the creditors. This may be done by advertisement in a newspaper if the High Court allows, for example where there are a large number of creditors.
Further meetings of creditors (called general meetings) are sometimes held if the trustee wants to find out the creditors' wishes in any matter relating to the insolvency proceedings, or if requested by 10% in value of the creditors.
Where an IP is trustee, a final meeting of creditors will be called (see details under 'Completion of the Case').
