The meeting discussed the initiation of insolvency proceedings. The committee first went through the comments made by members on Chapter 5 of the draft report. It them moved on to discussing payment by instalments for insolvency procedures, which the committee agreed should not be allowed.

The second subject considered was compulsory insolvency procedures for corporate debtors. The committee decided that across the boards, there should be a simple majority, with one vote for each £100 or part thereof, with an aggravated creditor entitled to apply to the Court. The committee also discussed the automatic freezing of assets, and the position of a debenture-holder.

The third matter discussed was distress and executors. The issue which was discussed was the gap between the dispatch of a company’s notice of intention to wind-up and the holding of a meeting in which the resolution to wind up is passed.

Meeting49 and 50 - 17 and 18 December 198x