Companies Act 2014 section 674

Power to exclude creditors not proving in time

Section 674 deals with the liquidator's power to set deadlines for creditors to prove their debts or claims, and to exclude from distributions those creditors who fail to do so in time.

• The liquidator may set a deadline by which creditors must prove their debts or claims, failing which they will be excluded from any distribution made before those debts or claims are proved.
• The deadline must be communicated to creditors in writing and must allow at least 28 days from the date of notification.
• This power now rests with the liquidator rather than the court, whereas previously only liquidators in voluntary windings-up could exercise it.
• A creditor may apply to court, on notice to the liquidator, for an extension of the deadline to prove their debt or claim.