Creditors' Meeting

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	Purpose			This is a meeting arranged in connection with an insolvency proceeding, at which any acknowledged creditor of an insolvent individual or company is entitled to attend. The normal purpose of a creditors' meeting is to inform the creditors of the financial position of the insolvent individual or company, and report on the likely amount that can be realised by disposing of any assets. Such funds will be used to pay off secured creditors, preferred creditors and unsecured creditors in that order.
	Procedure			The creditors' meeting is normally convened as soon as possible, and is usually held in a hotel in the home town of the insolvent individual or business concerned. The meeting will normally be opened and chaired by the insolvency practitioner appointed by either the court, or the insolvent individual, or the directors of the insolvent company. The creditors will receive a report explaining how the insolvency came about, and provide a statement of affairs setting out the current financial position of the insolvent individual or company. The creditors will also receive an indication of the likely funds that will be available to settle their claims. In the case of a company voluntary arrangement, or a company voluntary liquidation, an important purpose of the first creditors' meeting is to appoint an insolvency practitioner. In other proceedings the creditors will be asked to approve or reject the proposals laid before them. Creditors' voting rights are apportioned on the basis of the relative size of debt. The insolvent individual or at least one director, should attend the meeting, and be available to answer questions from the floor.
	Is it worth me attending the meeting?			As a small unsecured creditor in a liquidation ........ the honest answer is probably "no". Unless you are in a position to marshall a majority vote to influence the outcome of the meeting, you will be reduced to being a spectator of the events as they unfurl. When you receive notice of the creditors' meeting, it will include an invitation to nominate a proxy to vote on your behalf. You may prefer to use the proxy vote rather than attend yourself. Very few unsecured creditors in a liquidation get to see a penny of the money they are owed. Secured creditors and preferred creditors will be paid off first, and in full, before any funds become available to settle the amounts owed to unsecured creditors. Provided your unsecured claim is acknowledged, and the liquidation is being handled by a reputable insolvency firm, then you will continue to receive written reports on how the insolvency is progressing. Take the view that your money is lost. Should you eventually receive some of it back, then look upon it as a bonus. In the case of voluntary arrangements, there is more of a chance of seeing some of your money back. For this reason it is certainly worth your while attending the meeting and voting on the proposal being made. If you are going to attend and you possess information that you feel should be disclosed at the meeting, prepare a written statement that you can read out and then leave with the appointed insolvency practitioner. Writing it down will make you more objective. It should also save you from making personal and defamatory statements that will get you into hot water.
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