Committee Dynamics

• Jurisdiction: United States

Committee Dynamics

The committee normally consists of a group of five or more of the larger unsecured creditors chosen by the U.S. Trustee from among those willing to serve. Typically, the members of a committee have never met before, and most often the majority of the members have never served on a committee. Yet, within a very short period of time, this group of strangers is expected to act as a unit as the representative and protector of the entire general unsecured creditor body and to make some very important decisions on behalf of that group. The success of the case may depend on how well the committee functions as a group and the level of participation of each of its members.

Everyone Contributes

Probably the biggest problem with committee dynamics is the tendency in many cases for one member to dominate the committee. This may be the member with the largest claim, the one with the most committee experience or the most vocal. The ability of someone to make a valuable contribution to the committee, however, depends little on any of these factors. Without full participation by all committee...