The following section provides an overview of the primary powers of creditors when dealing with a company under the Companies Acts, under secondary legislation and related case law. For further details, please see the ODCE Information Book "The Principal Duties and Powers of Creditors" downloadable under the "Related Links" section at the end of this page.
Creditor
A creditor of a company is a person or company to whom the company owes a debt. Broadly speaking, there are two types of creditor, namely;
- Secured creditor
A secured creditor is a person whose debt is secured on one or more of the company's assets. - Unsecured creditor
An unsecured creditor's debt is not secured on any of the company's assets.
Creditors' Powers
The most significant power that creditors have under the Companies Acts is to seek to have the company liquidated. In addition to liquidation and receivership, creditors have various other powers to address defaults in the operation of a company:
- Power to appoint a liquidator;
- Power to appoint a receiver;
- Power to seek the appointment of an examiner;
- Power to seek court judgements in respect of debts owed;
- Power where default exists;
- Power to seek an investigation of the company;
- Power where a company is not in liquidation;
- Power to seek the restoration of the company to the Register of Companies;
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