Section Text
(1) A committee of inspection appointed in pursuance of section 464 shall consist of not more than twelve members, being creditors and contributories of the company or persons holding general or special powers of attorney from creditors or contributories, in such proportions as may be agreed on by the meetings of creditors and contributories, or in case of difference of opinion between the meetings, as may be determined by the 1 [Tribunal].
(2) The committee of inspection shall have the right to inspect the accounts of the liquidator at all reasonable times.
(3) The committee shall meet at such times as it may from time to time appoint, 2 [***] and the liquidator or any member of the committee may also call a meeting of the committee as and when he thinks necessary.
(4) The quorum for a meeting of the committee shall be one-third of the total number of the members, or two, whichever is higher.
(5) The committee may act by a majority of its members present at a meeting, but shall not act unless a quorum is present.
(6) A member of the committee may resign by notice in writing signed by him and delivered to the liquidator.
(7) If a member of the committee is adjudged an insolvent, or compounds or arranges with this creditors, or is absent from five consecutive meetings of the committee without the leave of those members who, together with himself, represent the creditors or contributories, as the case may be, his office shall become vacant.
(8) A member of the committed may be removed at a meeting of creditors if he represents creditors, or at a meeting of contributories if he represents contributories, by an ordinary resolution of which seven days' notice has been given, stating the object of the meeting.
(9) On a vacancy occurring in the committee, the liquidator shall forthwith summon a meeting of creditors or of contributories, as the case may require, to fill the vacancy; and the meeting may, by resolution, re-appoint the same, or appoint another, creditor or contributory to fill the vacancy:
Provided that if the liquidator, having regard to the position in the winding up, is of the opinion that it is unnecessary for the vacancy to be filled, he may apply to the Court and the 1 [Tribunal] may make an order that the vacancy shall not be filled, or shall not be filled except in such circumstances as may be specified in the order.
(10) The continuing members of the committee, if not less than two, may act notwithstanding any vacancy in the committee.
_____________________1. Substituted by Act 11 of 2003, Section 70, for "Court".
2.The words "and, failing such appointment, at least once a month," omitted by Act 65 of 1960, Section 174 (w.e.f. 28-12-1960).