Companies Act 2014 section 584

Duty of liquidator to call creditors' meeting if of opinion that company unable to pay its debts

Section 584 sets out the obligations of a liquidator in a members' voluntary winding up who forms the view that the company will not be able to pay its debts in full within the timeframe stated in the original declaration of solvency, and the consequences that follow from calling a creditors' meeting.

• Where a liquidator concludes that the company cannot pay its debts within the period stated in the directors' solvency declaration, they must call a creditors' meeting within 14 days, giving at least 10 days' notice by post and by advertisement in Iris Oifigiúil and two daily newspapers
• The liquidator must prepare and present a prescribed statement of the company's affairs — including assets, liabilities, a list of creditors and estimated claims — and must attend and chair the creditors' meeting
• From the date the creditors' meeting is held, the winding up automatically converts from a members' voluntary winding up to a creditors' voluntary winding up, with the original solvency declaration effectively set aside
• A liquidator who fails to comply with these obligations commits a category 3 offence, though the appointment of a new liquidator by creditors does not invalidate actions already taken by the member-appointed liquidator