COMPANIES ACT 1963 – SECT 261 Duty of liquidator to call creditors’ meeting if he is of opinion that company unable to pay its debts.

261.—(1) If, in the case of a winding up commenced after the operative date, the liquidator is at any time of opinion that the company will not be able to pay its debts in full within the period stated in the declaration under section 256 he shall forthwith summon a meeting of the creditors, and shall lay before the meeting a statement of the assets and liabilities of the company.

(2) If the liquidator fails to comply with this section, he shall be liable to a fine not exceeding £50.