Companies Act 2014 section 668

Constitution and proceedings of committee of inspection

Section 668 sets out the rules governing how a committee of inspection is constituted, how it conducts its business, how vacancies arise and are filled, and the restrictions on committee members profiting from the winding up.

• The committee sets its own meeting schedule, but the liquidator or any member may call additional meetings as needed; the committee can only act when a majority of its members are present, and decisions are taken by majority vote of those present.
• A member's position becomes vacant automatically if they are adjudicated bankrupt, reach an arrangement with their creditors, or miss two consecutive meetings without the permission of the group (creditors or company members) that appointed them; a member may also resign in writing or be removed by resolution at a meeting of whichever body appointed them, provided seven days' notice stating the purpose of the meeting has been given.
• When a vacancy arises, the liquidator must promptly call a meeting of the relevant body (creditors or company members) to fill it, unless the liquidator applies to court for an order that the vacancy need not be filled; where the departing member was an employee representative, the employees may elect a replacement from among their number.
• A committee member must not make any profit from the winding up unless the court grants leave or, in a members' voluntary winding up, the company passes a resolution permitting it, or, in a creditors' voluntary winding up, the creditors pass a resolution permitting it.

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