The liquidator should convene a meeting of the creditors within two months from the date of the court’s direction for determining who are to be the members of the committee.
2. Liquidator shall also call, within fourteen days of the meeting of the creditors or such extended time as the court may allow, a meeting of the contributories to consider the decision of the creditors and to accept the same with or without modifications or to reject it.
3. In case the contributories do not agree with the decision of the creditors in its entirety, liquidator shall apply to the court for directions as to whether there shall be a Committee of Inspection and if so, what shall be the composition of the committee and who shall be its members.
4. The committee shall consist of members both from the creditors and contributories of the company. The total number of members of the committee shall not exceed twelve.
Members shall be appointed both by the creditors and contributories in such proportions as may be agreed upon by them at their meeting or as may be determined by the court in the case of a difference of opinion between the meetings of both the creditors and contributories. The committee shall act by a majority of its members.
5. Committee of Inspection must meet at least once every month at any time fixed by it. Liquidator or any member of the committee may also call a meeting of the committee as and when he thinks necessary.
6. Committee cannot transact any business unless at least one-third of the total number of members or two, whichever is higher which will form its quorum, are present.
7. The Committee of Inspection will fix up the remuneration payable to the liquidator. Remuneration as fixed cannot be increased in any circumstance even with the sanction of the court.
8. The Committee of Inspection may allow the continuance of all the powers of the directors, which otherwise cease on the appointment of the liquidators.