[COM 551] Constitution and proceedings of committee of inspection551 

551

(1) A committee of inspection appointed in accordance with this Act must consist of creditors and contributories of the company, or persons holding general powers of attorney from creditors or contributories, in such proportions as may be agreed on by the meetings of creditors and contributories or as, in case of difference, may be determined by the court.

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

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

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

(5) If a member of the committee becomes bankrupt or compounds or arranges with his or her creditors or is absent from 5 consecutive meetings of the committee without the leave of those members who, together with the member, represent the creditors or contributories, as the case may be, the member's office must become immediately vacant.

(6) A member of the committee may be removed by a majority resolution at a meeting of creditors, if the member represents creditors, or a majority resolution at a meeting of contributories, if the member represents contributories, of which 21 days’ notice has been given, stating the object of the meeting.

(7) On a vacancy occurring in the committee, the liquidator must immediately summon a meeting of creditors or of contributories, as the case may require, to fill the vacancy, and the meeting may, by resolution, reappoint the same or appoint another creditor or contributory to fill the vacancy, provided that, if the liquidator, is of the opinion that it is unnecessary for the vacancy to be filled, the liquidator may apply to the court and the court may make an order that the vacancy must not be filled, on such conditions as it sees fit.

(8) The continuing members of the committee, if not fewer than 2, may act, notwithstanding any vacancy in the committee.