Requesting A Creditor Meeting To Remove A Liquidator

Summary

The case provides guidance for liquidators as to the appropriate exercise to conduct when deciding whether the threshold of 25% in value of creditor claims has been reached in support of a request for a creditors' meeting under s 171.

Key point

• A liquidator is not required to apply a 'strict proof' test to a creditor's claim at the requisition stage of a creditors meeting.

The Facts

In November 2014, the company entered into a creditor's voluntary liquidation.

In September 2015, the applicant requested that the liquidator hold a creditors' meeting for the purpose of considering his removal as liquidator, pursuant to s 171 Insolvency Act 1986. The liquidator refused on the grounds that the request had not been supported by 25% in value of the company's creditors. The court considered the exercise that should be carried out in order to ascertain whether the 25% threshold had been reached.