Part VI - Requisitioned Meetings
April 2007
Introduction
i What is a requisitioned meeting?
It is a meeting which is requested by the creditors or (in a company) contributories.
ii What types of meeting can be requisitioned?
A first meeting of creditors can only be requisitioned by the creditor(s) themselves. The sole reason for requesting a first meeting must be for the purpose of appointing a liquidator or trustee other than the official receiver. There is no provision for contributories to requisition first meetings.
A general meeting may also be requested by creditors or in company cases by the contributories.
iii What if the Official Receiver has already decided not to hold a first meeting?
Whether or not the official receiver has already sent out no meeting notices, provided that the requirements for requisitioning a first meeting have been met, he/she must hold one. Where notice of no meeting has already been given, the official receiver must formally withdraw this by writing to all those who were told of his/her original decision.
The meeting will be called a ‘first meeting’ and held as if no previous notice had been given.
iv How are meetings requisitioned?
The request for a meeting must be made in writing to the official receiver, trustee or liquidator. There are statutory forms available for this purpose. A creditors' requisition should be made on form 4.21 (company) or 6.34 (bankruptcy). Contributories should use form 4.24. However, if a requisition is received by ordinary letter and contains all the information which would normally be found in the prescribed form, the official receiver may accept this as a valid requisition.
The request should set out which creditors or (in a company) contributories are making the request, how much they are owed (or what their shareholding is) and what the purpose of the meeting is to be. They must also pay in advance for the costs and expenses of holding the meeting. For further information see paragraph vii.
v Does the Official Receiver have to hold the meetings?
The official receiver has no discretion in summoning a first meeting where at least 25% in value of the creditors requisition one. A general meeting must be held if at least 10% in value of the creditors (or contributories in a company) request that a meeting is summoned.
In a company case where the creditors have requisitioned a first meeting, meetings of both creditors and contributories must be held. Conversely, where the request is for a general meeting to be summoned the requisition must specify whether a meeting of creditors only or a meeting of both creditors and contributories is to be held. Contributories may only requisition a general meeting of contributories.
vi Is the procedure for holding a requisitioned meeting the same as that of other meetings?
Once it has been ensured that the requisition has been made properly, the procedure is the same as described in the Case Help Manual Parts "Calling a Meeting" and "Day of the Meeting" except that:
a the forms sent out will need to say that the meeting has been requisitioned and why;
b the official receiver is not required to apply to the court for an extension of time where the requisition means that a first meeting will be held outside the 4 months period; and
c a general meeting must be held within 35 days of receipt of the request (or receipt of expenses, if later), and a first meeting within 3 months.
vii Costs to be paid by the requisitioner
The Insolvency Rules 1986 provide that the expenses of summoning and holding a meeting should be paid by the requisitioner, who must deposit security with the official receiver to cover those expenses. Further, the rules state that the official receiver should take no action regarding this until such a deposit has been made. The requisitioner will be required to pay for the cost of advertising the meeting and if necessary the room hire for holding the meeting.
The official receiver must ascertain these costs and when the deposit for such is paid it should be posted to the estate account. The cost of any advertisement will automatically be paid from Vote by Finance Section under the consolidated billing arrangement with MK Howard. The official receiver should identify the charge notice for advertising the requisitioned meeting and send it to OR Banking. They will arrange for the payment to be made from the estate account to re-imburse the Vote account. Where the requisitioner has to pay for appropriate room hire, the costs should be deposited in the estate account and the invoice paid from the estate account.
Notes:
a Whilst a general meeting must be held within 35 days of receipt of the request and deposit, 21 days notice must still be given to those creditors and/or contributories due to receive notice. This means that the request for a general meeting must be acted upon quickly.
b The total amount due to all creditors, including secured creditors for the full amount, is used to check whether the correct proportion of creditors have made the request.
c To confirm the total amount outstanding to creditors, the official receiver must use all the information available to him - in practice this means checking the statement of affairs (or list of creditors) and proofs lodged and correspondence from creditors.
Where can I find out more?
Technical Notice T20/04: The costs of convening a requisitioned meeting of creditors and contributories in appropriate cases
Technical Manual
Chapter 16, Parts 2 and 15.
Insolvency Rules
Rules 4.50 and 6.79 - First Meetings
Rules 4.57 and 6.83 - Requisitioned meetings
Rules 4.61 and 6.87 - Expenses of summoning meetings
The Insolvency Act 1986
Section 136 - Functions of Official Receiver
Section 168 - Supplementary Powers
Section 294 - Powers of creditors to requisition meeting
Forms to be used
MTGORC Letter to requisitioning creditor(s)/contributory(ies) regarding payment of expenses of summoning and holding meeting
All other forms are the same as given in the relevant meetings parts of the Case Help Manual according to which type of meeting is required.
Click HERE to view the Requisitioned Meetings Flowchart.
Procedure
1 Receive request and check that the request contains all the information required:
a full name and address of the creditor (or contributory) making the request;
b under which section of the Insolvency Act the request is made;
c the purpose of the meeting;
and unless the creditor or contributory alone represents the required value
d a list of the creditors or contributories concurring with the request and the amount of the respective claims in the bankruptcy or winding up or of the contributories respective values (being the amount for which they may vote at any meeting)
e from each creditor or contributory concurring , written confirmation of his/her concurrence
2 Check that the correct proportion of creditors or contributories have supported the request:
A request for a first meeting must have the support of one quarter in value of the creditors
A request for a general meeting must have the support of one tenth in value of the creditors or one tenth in value of the contributories
.
If the proportion is incorrect, refer to examiner.
When making the above calculation:
a all the figures needed will be available from the statement of affairs (debtor’s petition cases) Preliminary Information Questionnaire (PIQB or PIQC) or the creditors’ information on LOIS screen 31.
b ensure that the total amount due to all creditors is used, including the full amount owed to secured creditors.
Where no deposit has accompanied the request
3 Liaise with the cashier to determine the exact amount which is required to cover the costs of summoning the meeting(s). This should include the costs of advertising the meeting and (where appropriate) hiring a venue.
4 Once the amount required has been confirmed by the cashier in writing, prepare and send form MTGORC to the requisitioning creditors / contributories (DO73).
When the deposit is received
5 Ensure that the deposit is correct if received with the requisition or as requested in the form MTGORC.
6 Fix meeting date, enter on LOIS (CA21) and diarise.
A general meeting be held within 35 days of receipt of the deposit and a first meeting within 3 months.
Where the requisition is for a first meeting
7 If the official receiver has already given notice that no first meeting is to be held (NNM) prepare the official receiver’s formal withdrawal of the notice of no meeting and send to all those who were sent the no meeting notice. The examiner will be responsible for drafting this.
In all cases
8 Depending on the type of meeting, the procedures in Case Help Manual Parts III to IV (first meetings) or Part V (general meetings) apply with the following amendments:
a it is not necessary to apply for an extension of time for holding a first meeting
b the forms NFM/NGM will need to say that a meeting has been requisitioned and why