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Liquidation Committee

During the process of liquidation the creditors appoint a few of themselves to assist the liquidator. This group of creditors is called a liquidation committee. This group is usually formed at a meeting called "Section 98" meeting, but it might be formed later too. There are some limitations regarding the committee: there should be at least 3 creditors, and the maximum number of members is 5. Before the committee can start to act, all its members must sign a form in which they consent to act as liquidation committee members, then the liquidator prepares a certificate of constitution which has to be filed at the Registrar of Companies. During liquidation, such committees are rarely formed, but if there is a possibility, people should opt for the formation of a liquidation committee.