In a bankruptcy, the power to make decisions on your company is transferred from you to the estate administrator and the creditors. The creditors decide on the matters of the estate at the creditors’ meetings. As a representative of your company, you can take part in the meetings and express your views but you cannot vote. If the creditors want to have closer cooperation with the estate administrator, they may elect a creditors’ committee from among themselves.
A creditor with uncontested claims against your company has the right to file a petition for the bankruptcy of your company. The claims may be based on a valid court decision or a commitment made by your company.
The creditors also have the right to present their opinions to the court on the selection of the estate administrator.
In a bankruptcy, the final say in your company's matters is transferred from you to the creditors. At the creditors’ meeting, the creditors have the right to decide on all matters that are not the responsibility of the estate administrator under the Bankruptcy Act.
The creditors have the right to get information about the matters of the bankruptcy estate. At the same time, the estate administrator does not need to provide you with any information as the debtor's representative if there are valid reasons for this. However, the estate administrator must provide you with the information as soon as there are no longer any reasons for refusing to give it.
The creditors are also entitled to disbursements from the bankruptcy estate in accordance with the disbursement list prepared by the estate administrator. If a creditor feels that the disbursement has not been fair, it can contest the final settlement of accounts prepared by the estate administrator.
At the creditors’ meeting, the creditors decide on such matters as the management, use and sale of the bankruptcy estate's assets. The meeting also decides on the approval of the measures taken by the estate administrator, the carrying out of a special audit, and the fees paid to the estate administrator.
As the representative of the bankrupt company, you have the right to take part in the creditors’ meetings and express your views on the matters discussed there. However, you cannot vote at the meetings. You will normally receive the invitation to the meetings and details of the matters discussed in them from the estate administrator.
The first creditors’ meeting must be held within two months of the preparation of the estate inventory and no later than six months from the initiation of the bankruptcy proceedings. In addition to the first meeting, the creditors meet as necessary. However, you do not have any right to request a meeting.
The creditors can also decide on the matters of the bankruptcy estate without meetings. The estate administrator must nevertheless ensure that you are provided with an opportunity to express your views on the matters discussed by the creditors.
The creditors elect a creditors' committee from among themselves for the bankruptcy estate though this is rarely done. The committee assists the estate administrator and supervises the administrator's work. It also performs the tasks assigned to it by the creditors’ meeting.
The existence of a creditors’ committee makes the cooperation between the creditors and the estate administrator smoother than if the contacts are only limited to creditors’ meetings.
The creditors’ committee must have at least three members. They must represent the key creditor groups. The committee must elect a chairperson from among its members.
The creditors’ committee does not have any independent decision-making powers. The creditors can, however, authorise the committee to approve specific decisions made by the estate administrator. The committee makes its decisions by a simple majority (= the proposal getting the most votes is adopted).
The creditors’ committee is convened by the estate administrator or the chairperson of the creditors’ committee.