Companies Act 2014 section 630

Restrictions in creditors' voluntary winding up and procedures in case of certain defaults

Section 630 restricts the powers a company-nominated liquidator may exercise before the creditors' meeting is held in a creditors' voluntary winding up, and sets out the steps the liquidator must take if the company or its directors fail to comply with the requirements for that meeting.

• A liquidator nominated by the company generally cannot exercise liquidator powers (under section 627) before the creditors' meeting, unless the court gives permission — except for the power to take custody of company property (paragraph 9 of the Table to section 627)
• The liquidator must attend the creditors' meeting and report on any powers already exercised under sections 627 or 631
• If the company or its directors fail to comply with their obligations to convene and prepare for the creditors' meeting (under section 587), the liquidator must apply to the court within 14 days for directions on how to remedy the default
• A liquidator who fails to comply with any part of this section without reasonable excuse commits a category 3 offence