A creditors’ meeting is held to allow a company’s creditors to discuss its financial situation, particularly when the company is facing serious financial difficulties or liquidation.
Purpose of a creditors’ meeting
These meetings provide an opportunity for creditors to propose and vote on the next steps, with a simple majority of creditors (in person or by proxy) required to approve or reject decisions. Creditors may vote on matters such as the appointment of an Insolvency Practitioner, the approval or rejection of a Company Voluntary Arrangement (CVA) or suggest modifications as well as in the case of individuals, an Individual Voluntary Arrangement (IVA). In both personal and corporate Voluntary Arrangements, 75% of creditors will be required to approve the CVA or IVA.
How creditors can participate
Creditors do not have to attend creditor meetings in person as there are remote opportunities to participate through proxies, virtual meetings or filling in a form/submitting their vote via email.
