R3 The Association of Business Recovery Professionals is our trade body and is the leading organisation for insolvency, restructuring and turnaround specialists in the UK.
R3 has produced a set of guidelines suitable for distribution to unsecured creditors which explain the rights of creditors during an insolvency process. These are available as downloads by clicking here. Additionally R3 has launched a website which provides a 'plain English' guide for unsecured creditors to help them understand the insolvency process and become more engaged. The website can be found at www.creditorinsolvencyguide.co.uk
A creditors' committee is a group of not less than three and not more than five creditors whose purpose is to represent the interests of the main body of creditors to assist the insolvency office holder in fulfilling his or her duties.
A committee is particularly useful in large complex insolvencies where, for example, there can be many key decisions that an insolvency practitioner has to make which may involve spending money that would otherwise be available to pay a dividend to unsecured creditors.
The committee also approves how the office holder is to be paid out of the assets of an insolvent estate.
R3 has issued a guide on creditors' committees which can be downloaded here and there are two relevant Statements of Insolvency Practice ("SIPs") - (click on the links below to download):
A further guide on creditors' meetings can be downloaded here