Insolvency Act 1986

Miscellaneous

26Creditors' committee

(1)Where a meeting of creditors summoned under section 23 has approved the administrator's proposals (with or without modifications), the meeting may, if it thinks fit, establish a committee ("the creditors' committee") to exercise the functions conferred on it by or under this Act.

(2)If such a committee is established, the committee may, on giving not less than 7 days' notice, require the administrator to attend before it at any reasonable time and furnish it with such information relating to the carrying out of his functions as it may reasonably require.

27Protection of interests of creditors and members

(1)At any time when an administration order is in force, a creditor or member of the company may apply to the court by petition for an order under this section on the ground—

(a)that the company's affairs, business and property are being or have been managed by the administrator in a manner which is unfairly prejudicial to the interests of its creditors or members generally, or of some part of its creditors or members (including at least himself), or

(b)that any actual or proposed act or omission of the administrator is or would be so prejudicial.

(2)On an application for an order under this section the court may, subject as follows, make such order as it thinks fit for giving relief in respect of the matters complained of, or adjourn the hearing conditionally or unconditionally, or make an interim order or any other order that it thinks fit.

(3)An order under this section shall not prejudice or prevent—

(a)the implementation of a voluntary arrangement approved under section 4 in Part I, or any compromise or arrangement sanctioned under section 425 of the Companies Act; or

(b)where the application for the order was made more than 28 days after the approval of any proposals or revised proposals under section 24 or 25, the implementation of those proposals or revised proposals.

(4)Subject as above, an order under this section may in particular—

(a)regulate the future management by the administrator of the company's affairs, business and property;

(b)require the administrator to refrain from doing or continuing an act complained of by the petitioner, or to do an act which the petitioner has complained he has omitted to do;

(c)require the summoning of a meeting of creditors or members for the purpose of considering such matters as the court may direct;

(d)discharge the administration order and make such consequential provision as the court thinks fit.

(5)Nothing in section 15 or 16 is to be taken as prejudicing applications to the court under this section.

(6)Where the administration order is discharged, the administrator shall, within 14 days after the making of the order effecting the discharge, send an office copy of that order to the registrar of companies; and if without reasonable excuse he fails to comply with this subsection, he is liable to a fine and, for continued contravention, to a daily default fine.