Creditors don’t always fully appreciate their rights enabling them to influence the appointment of an independent liquidator at a creditors’ meeting to carry out investigations into the prior dealings of a creditor being placed into an insolvency process.
As creditor voting is based upon value then, of course, the bigger the value of your debt the greater the influence you will have in determining the outcome of the creditors’ meeting. The Recruitment Sector can often be major creditors as businesses in financial difficulty often turn to Employment Agencies as a short term source of credit to cover staffing costs. On the basis, however, that there will always be creditors who do not vote and that many resolutions only require a simple majority, even relatively minor creditors can influence the outcome. Click here to read the entire article.
