Section V Creditors' Committee

(1)

The meeting of creditors may appoint a creditors' committee consisting of not less than three and not more than nine members.

(2)

The creditors' committee shall include persons representing both secured and unsecured creditors, except for those under Art. 616, paragraph 2.

(1)

(Amended - SG 84/2000) The creditors' committee shall assist and check the activities of the receiver with respect to the property management and inspect the books and cash availabilities and shall inform the court in the cases under Art. 657.

(2)

Cash availabilities shall be inspected at least once a month and the findings shall be communicated to the court of jurisdiction over bankruptcy.

(1) The members of the creditors' committee shall be entitled to remuneration which is determined at the time of their appointment at the expense of creditors.

(2) The unpaid remuneration shall be deducted, at the request of the creditors' committee, when the property converted into cash is distributed according to the size of receivables on a pro rata basis.

Members of the creditors' committee shall not acquire in any way either directly or through another person chattels or rights from the Bankruptcy Estate. This restriction applies also to the their spouses, relatives of direct lineage, relatives of collateral lineage up to six times removed and in-laws up to three times removed.

As far as the relations between the creditors' committee and creditors are not settled with the provisions of this Part or with an agreement, the provisions of Arts. 280-292 of the Law on Obligations and Contracts shall apply.

---

Next: CLAIMING RECEIVABLES
Up: AUTHORITIES AND MANAGEMENT OF THE BANKRUPTCY ESTATE
Previous: Section IV Meeting of Creditors