Meetings (if crialitmw.—When a winding-up order has been made, and no liquidator specially appointed, the official receiver calls together separate meetings of the creditors and contributories. The purpose of these meetings is to determine whether or not an application is to be made to the Court for appointing a liquidator in the place of the official receiver ; and whether a like application is to be made for the appointment of a committee of inspection to act with the liquidator, and who are to be the members of the committee if appointed. If there is a difference upon these matters between two meetings, the Court will decide it.
Statement (If affiiirs.—A statement of the affitirs of the company must be made out and presented to the official receiver. A special forni is pre scribed, and this, verified by affidavit, should show the particulars of the assets, debts, and liabilities of the company, the names, residences, and occupations of the creditor-, the securities held by them, the dates when the securities were given, and such other information as the official receiver may require. The directors and secretary are primarily the persons liable to make ancl verify this statement, and it must be submitted within fourteen days from the date of the order. The statute requires this statement to be submitted and verified by one or more of the persons who are at the time of the winding-up order the directors and bv the person who is at that time the secretary or other chief officer of the company, or by such of the persons being or having been directors or oflicers of the company, or having taken part in the forniation of the company at any time within one year before the order for winding-up the company, as the official receiver, subject to the direction of the Court, may require to submit and verify the same. i'10 per day is the penalty for non-compliance with the requirements of the law relating to the preparation and submission of the statement; but any one concerned in its preparation can receive his costs and expenses out of the assets of the company at the discretion of the official receiver.
Any person who states himself in writing to be a creditor or contributory is entitled to inspection of the statement and to a copy or extract.
Report. —A preliminary report by the official receiver is submitted to the Court as soon as practicable after the statement of affairs has been brought in. This report deals—(a) with the amount of the capital issued, subscribed, and paid up, and the estimated amount of assets and liabilities; and (b) if the company has failed, with the causes of the failure ; and (c) with the question whether, in the opinion of the official receiver, further inquiry is desirable as to any matter relating to the promotion, formation, or failure of the company, or the conduct of the business thereof. The official receiver may also present further reports. In these he can state the manner in which the company was formed, and whether, in his opinion, any fraud has been com mitted by any person in the formation or promotion, or by any director or other officer in relation to the company since its formation, and any other matters he thinks it desirable to bring to the notice of the Court. After
considering such a report the Court may order the examination of any one referred to therein. In this examination the official receiver is entitled to take part ; so also is the liquidator, if any. The person examined is ex amined on oath, and it is his duty to answer all questions that the Court may put or allow to be put to him. Prior to his examination he is entitled, at his own cost, to a copy of the official receiver's report, and to be represented by solicitor or counsel ; and the latter may put such questions to him as the Court consider just for the purpose of enabling him to explain or qualify any answers he may have given. But if the Court considers he has exculpated himself from any charges made or suggested against him, he may be allowed such costs as the Court considers fit. Notes of his examination are taken down in writing, and read over to or and signed by, him. They may thereafter be used as evidence against him. And they are also open to the inspection of any creditor or contributory of the company at all reasonable times.
Committee of inspeetimi.—This committee consists of creditors or con tributories of the company, or persons holding general powers of attorney from creditors or contributories in such proportions as agreed upon by the meetings of creditors and contributories, or as, in case of difference, may be determined by the Court. It meets at times it appoints, and, failing any appointment, at least once a month. The liquidator or any member of the committee may call a meeting as and when he thinks necessary. The com mittee acts by a majority of members present .at a meeting, but cannot act unless a majority of the committee is then present. Any member may resign by a signed written notice delivered to the liquidator. If a member of the committee becomes bankrupt, his office becomes vacant ; and so does it if he compounds or arranges with his creditors, or is absent from five con secutive meetings without the leave of those members who together with himself represent the creditors or contributories as the case may be. A member who represents creditors may be removed by an ordinary resolution at any meeting of creditors of which seven days' notice has been given, stating the object of the meeting; and a member who represents contribu tories may be removed in like manner by a meeting of contributories. Vacancies are filled to the appointments by a meeting of creditors or con tributories as the case may be. The continuing members of the committee, provided there are not less than two of such, may act notwithstanding any vacancy in their body. If there is no committee, then the Board of Trade can so act, as occasion requires, on the application of the liquidator.