The liability of members of creditor committees - the price for staying "close to the action"?

Financial collapses can leave creditors - large and small - with no understanding of how, or if, they will ever see any return on what they are owed. It is natural that such creditors would want to stay "close to the action". They often rush to join creditor committees, without really knowing what is involved. What are the risks of being on a committee in an insolvency administration? What are the responsibilities of a committee member? What is the potential for conflict with the creditor's own self interests? This article examines the nature of creditor committees and their statutory and common law powers and responsibilities, and exposes a number committees.