1. The Tribunal may, while passing an order of winding up of a company, direct that there shall be, an advisory committee to advise the Company Liquidator and to report to the Tribunal on such matters as the Tribunal may direct.
2. The advisory committee appointed by the Tribunal shall consist of not more than twelve members, being creditors and contributories of the company or such other persons in such proportion as the Tribunal may, keeping in view the circumstances of the company under liquidation, direct.
3. The Company Liquidator shall convene a meeting of creditors and contributories, as ascertained from the books and documents, of the company within thirty days from the date of order of winding up for enabling the Tribunal to determine the persons who may be members of the advisory committee.
4. The advisory committee shall have the right to inspect the books of account and other documents, assets and properties of the company under liquidation at a reasonable time.
5. The provisions relating to the convening of the meetings, the procedure to be followed thereat and other matters relating to conduct of business by the advisory committee shall be such as may be prescribed.
6. The meeting of advisory committee shall be chaired by the Company Liquidator.
Legal Commentary & Landmark Judgments: Section 287
Section 287 of the Companies Act, 2013 authorizes the Tribunal to direct the constitution of an Advisory Committee comprising up to twelve creditors and contributories to advise and monitor the Company Liquidator, granting members broad statutory rights of inspection.
Creditors with substantial financial stakes should move an application under Section 287 during the initial winding-up hearings to secure representation on the Advisory Committee. This allows direct real-time oversight of the liquidator's asset realizations, sale tenders, and forensic audit steps without requiring constant adversarial motions.