THE COMPANIES ORDINANCE, 1972

Committees of inspection

229.—(1) When a winding up order has been made by the court, it shall be the business of the separate meetings for the purpose of determining whether or not an application should be made to the court for appointing a liquidator other than of the Official Receiver, to determine further whether or not an application is to be made to the court for the appointment of a committee of inspection to act with the liquidator and who are to be members of the committee if appointed.

(2) The court may make any appointment and order required to give effect to any such determination, and if there is a difference between the determinations of the meetings of the creditors and shareholders in respect of the matters aforesaid, the court shall decide the difference and make such order thereon as the court may think fit.

230.—(1) A committee of inspection appointed in pursuance of this Ordinance shall consist of creditors, debenture holders, shareholders and contributories (other than shareholders) of the company, or persons holding general powers of attorney from such persons, in such proportions as may be agreed on by the meetings of creditors and shareholders, or as, in the case of a difference, may be dct-.-rmir^d by the court, and members of the committee appointed ?s creditors, debenture holders, shareholders or contributories (other than shareholders) shall as members of the committee represent the interests of all the persons who belong to the category by virtue of which they were respectively appointed.

(2) The committee shall meet at such times as it from time to time resolves, and failing such appointment, at least once a month, .rad the liquidator or any member of the committee may also call a meeting of the committee as and when he thinks necessary.

(3) The committee may act by a majority of its members present at a meeting, but shall not act unless a majority of the committee are present.

(4) A member of the committee may resign by notice in writing signed by him and delivered to the liquidator.

(5)  If a member of the committee becomes bankrupt, or compounds or makes an arrangement with his creditors, or is absent from five consecutive meetings of the committee without the leave of those members who together with himself represent the creditors, shareholders, contri-butories or debenture holders (as the case may be), his office shall thereupon become vacant.

(6)   A member of the committee may be removed by an ordinary resolution passed by a meeting of creditors, if he represents creditors or debenture holders, or by an ordinary resolution passed by a meeting of shareholders if he represents shareholders or con tributaries, provided that at least seven days' notice has been given of the meeting stating the purpose for which it is called,

(7)  On a vacancy occurring in the committee the liquidator shall forthwith summon a meeting of creditors or of shareholders, as the case may require, to fill the vacancy, and the meeting may, by resolution, appoint another person who is qualified to be a member of the committee. If the vacancy occurs in respect of a person appointed to represent creditors or debenture holders the vacancy shall be filled by a meeting of creditors, and in any other case it shall be filled by a meeting of shareholders.

(8)  The continuing members of the committee, if not less than two, may act notwithstanding any vacancy in the committee.

231. Where in the case of a winding up there is no committee of inspection, the Registrar may, on the application of the liquidator, do any act or thing or give any direction or permission which is by this Ordinance authorised or required to be done or given by the committee.