—(1) The committee of inspection shall consist of creditors and contributories of the company or persons holding —
general powers of attorney from creditors or contributories; or
special authorities from creditors or contributories authorising the persons named therein to act on such a committee,
appointed by the meetings of creditors and contributories in such proportions as are agreed or, in case of difference, as are determined by the Court.
(2) The committee shall meet at such times and places as it may from time to time appoint, and the liquidator or any member of the committee may also call a meeting of the committee as he thinks necessary.
(3) The committee may act by a majority of its members present at a meeting, but shall not act unless a majority of the committee is present.
(4) A member of the committee may resign by notice in writing signed by him and delivered to the liquidator.
(5) If a member of the committee becomes bankrupt or assigns his estate for the benefit of his creditors or makes an arrangement with his creditors pursuant to any written law relating to bankruptcy or is absent from 5 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 thereupon become vacant.
(6) A member of the committee may be removed by an ordinary resolution at a meeting of creditors, if he represents creditors, or of contributories, if he represents contributories, of which meeting 7 days’ notice has been given stating the object of the meeting.
(7) A vacancy in the committee may be filled by the appointment by the committee of the same or another creditor or contributory or person holding a general power of attorney or special authority as specified in subsection (1).
(8) The liquidator may at any time of his own motion and shall within 7 days after the request in writing of a creditor or contributory summon a meeting of creditors or of contributories, as the case requires, to consider any appointment made pursuant to subsection (7), and the meeting may confirm the appointment or revoke the appointment and appoint another creditor or contributory or person holding a general power of attorney or special authority as specified in subsection (1), as the case requires, in his stead.
(9) The continuing members of the committee if not less than 2 may act notwithstanding any vacancy in the committee.
[UK, 1948, s. 253; Aust., 1961, s. 242]