The matters arising in this meeting included an issue of lack of staff. The committee emphasised that any discussion must be focused on what happens in insolvency, but not necessarily before it.

On the informal procedures to bankruptcy, the meeting discusses Deeds of Arrangement as an alternative to bankruptcy. It highlighter the fact that the powers of a trustee under the deeds of arrangement are less than those of a trustee in bankruptcy, and that the time frames are also different. If these differences are eliminated, then Deeds could be a good alternative to bankruptcy. It makes a number of points regarding the possible modifications to the system of Deeds of Arrangement.

In relation to voluntary winding up, the committee highlighted procedural issues in relation to appointment. But it nevertheless said that the procedures should stay as they are, but if a creditor is not happy with the appointed chairman, they should be able to apply to the court for a new meeting to be called.

The committee pointed out to the fact that under the voluntary winding up procedure, there were no provisions that allowed the appointment for someone to administer the company until a Liquidator is appointed.

The committee discussed briefly the possibility of expanding the Administration Order Procedure.

On page 10 of the document, you will find the comments made by Muir Hunter on the matters arising in the 6th meeting. The comments focuses on a number of paragraphs of the meeting’s report. On page 11, there is a letter from the Vice Chancellor of the Royal Court of Justice to Muir Hunter about Romalpa. On page 13, you will find Muir Hunter’s reply to the Vice Chancellor’s letter.

Meeting 7 - 25-8-77