Companies Act 2014 section 698

Entitlement to vote of creditors

Section 698 sets out the rules governing when and how creditors are entitled to vote at creditors' meetings during a company winding up, including the requirement to lodge proof of debt and the special rules that apply to secured creditors and uncertain debts.

• Creditors must lodge proof of debt with the liquidator before the relevant deadline in order to be entitled to vote at creditors' meetings
• Where a debt is unliquidated, contingent or unascertained in value, the chairperson may place an estimated minimum value on it to allow the creditor to vote
• Secured creditors can only vote on the unsecured balance of their debt, after deducting the assessed value of their security, unless they surrender the security entirely
• The chairperson has power to admit or reject proofs of debt for voting purposes, but that decision can be appealed to the court

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