Companies Act 2014 section 666

Appointment of committee of inspection in court ordered winding up

Section 666 sets out the rules for appointing a committee of inspection when a company is being wound up under a court order, including the composition of the committee and the rights of creditors, employees, and the company in relation to its membership.

• The liquidator must inform creditors of their right to appoint a committee of inspection and may (or must, if requested by creditors holding at least one-tenth in value of all creditors) call a meeting to decide whether to establish one
• Creditors may appoint a committee of up to five members, and if employees elect a representative, that person must be included as one of the five
• The company may subsequently appoint up to three additional members at a general meeting, provided the total committee size never exceeds eight, but creditors can challenge any company-appointed members
• A liquidator who fails without reasonable excuse to inform creditors of their right to appoint a committee commits a category 4 offence

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