Prove liquidation claims in three months

Riccardo Petersen from Norton Rose Fulbright.

a company goes into liquidation claims must be lodged and proved within three months as from the conclusion of the second meeting of creditors of the insolvent company.

The case of Wishart v Billiton is a reminder that although the Companies Act 1973 was largely repealed, the provisions relating to winding-up of companies remain in force until a comprehensive insolvency law is enacted. Section 44(1) of the Insolvency Act is applicable to claims against companies being wound-up according to these remaining provisions of the 1973 Companies Act.

Once the claim is lodged, the Master of the High Court has authority to confirm, reduce or disallow a disputed claim. Only once the Master has made a decision on the claim can the jurisdiction of the High Court be invoked to review that decision.

First published by Financial Institutions Legal Snapshot.