Section 635 CAMA 2020
Section 635 Companies and Allied Matters Act is about Meeting of creditors. It is under Chapter 22 (Voluntary winding-up resolutions for and commencement of voluntary winding-up) of the Act.
(1) The company shall cause a meeting of the creditors of the company to be summoned for the day, or the day next following, on which there is to be held the meeting at which the resolution for voluntary winding-up is to be proposed, and shall cause the notices of the meeting of creditors tobe sent by post to the creditors simultaneously with the sending of the notices of the meetings of the company.
(2) The company shall cause notice of the meeting of the creditors to be published once in the Federal Government Gazette and once at least in two daily newspapers printed in Nigeria and circulating in the district where the registered office or principal place of business of the company is situate.
(3) The directors of the company shall—
(a) cause a full statement of the position of the company’s affairs,including—
(i) particulars of the company’s assets,
(ii) debts and liabilities together with a list of the creditors of the company, and
(iii) the estimated amount of their claims to be forwarded to each creditor not later than 14 days before the date of the meeting to be held by the directors and at which the statement shall be laid ; and
(b) appoint one of them to preside at the meeting.(4) It is the duty of the director so appointed to attend and preside over the meeting.
(5) If the meeting of the company at which the resolution for voluntary winding-up is to be proposed, is adjourned and the resolution is passed at an adjourned meeting, any resolution passed at the meeting of the creditors held under subsection (1) shall have effect as if it had been passed immediately after the passing of the resolution for winding-up of the company.
(6) If default is made by—
(a) the company in complying with subsection (1) or (2) ;
(b) the directors of the company in complying with subsection (3) ;
(c) any director of the company appointed to preside, in complying with subsection (4),the company, directors or director, as the case may be, shall be liable to a penalty in such amount as the Commission shall specify in its regulations andin the case of default by the company, each officer of the company is liable to the like penalty.
