PART 4
CREDITORS’ MEETING TO CONSIDER
DEBTOR’S PROPOSAL
Summoning of creditors’ meeting
11.—(1)  A nominee who is required under section 281(1) of the Act to summon a creditors’ meeting must send notices summoning the meeting at least 14 days before the day on which the meeting is to be held.
(2)  The day on which the creditors’ meeting is to be held must be a day at least 14 days but not more than 28 days after the day on which the nominee’s report is submitted to the Court.
(3)  The nominee must state in each notice summoning the creditors’ meeting —
(a)the day on which the creditors’ meeting is to be held;
(b)the time and venue of the creditors’ meeting;
(c)the date of submission of the nominee’s report to the Court; and
(d)any direction or order made by the Court under section 280(3), (4) or (5) of the Act in relation to the matter.
(4)  In addition to the information mentioned in paragraph (3), the nominee must in each notice summoning the creditors’ meeting draw the creditors’ attention to section 282(1) of the Act and regulation 14.
(5)  A nominee must enclose with each notice summoning a creditors’ meeting —
(a)a form of proxy;
(b)a copy of the proposal to be considered by the creditors’ meeting and the nominee’s comments (if any) on the proposal; and
(c)either —
(i)a copy of the statement of the debtor’s affairs submitted to the nominee under section 280(2)(b) of the Act; or
(ii)a summary of the statement mentioned in sub‑paragraph (i) which includes a list of creditors and the amounts owed to each creditor.
Chairperson of creditors’ meeting
12.—(1)  The nominee appointed under a proposal is, by default, the chairperson of the creditors’ meeting to consider the proposal.
(2)  The chairperson of a creditors’ meeting must not, by virtue of any proxy held by the chairperson, vote to increase or decrease the amount of the remuneration or expenses of the nominee in question or the expenses relating to the supervision of the voluntary arrangement in question, unless the proxy specifically directs the chairperson to so vote.
Entitlement to vote in creditors’ meeting
13.—(1)  Subject to paragraph (2), every creditor who has been given notice of a creditors’ meeting is entitled to vote at the creditors’ meeting or any adjournment of the creditors’ meeting.
(2)  A creditor may not vote in respect of —
(a)any debt for an unliquidated amount; or
(b)any debt the value of which is not ascertained,
unless the chairperson of the creditors’ meeting agrees to put upon the debt an estimated minimum value for the purpose of entitlement to vote.
(3)  The value of a vote cast by a creditor at a creditors’ meeting is calculated according to the amount of debt owed to the creditor as at the date of the creditors’ meeting.
(4)  The chairperson of a creditors’ meeting may, in relation to a creditor’s claim for the purpose of the creditor’s entitlement to vote at the creditors’ meeting, admit or reject a creditor’s claim (or any part of the claim).
(5)  Any decision of the chairperson of a creditors’ meeting on entitlement to vote is subject to appeal to the Court by any creditor or the debtor in question.
(6)  If the chairperson of a creditors’ meeting is in doubt whether a creditor’s claim (or any part of the claim) should be admitted or rejected, the chairperson must mark a creditor’s claim (or any part of the claim) as objected to and allow the creditor to vote, subject to the vote (or any part of the vote) being subsequently declared invalid if the objection to the claim is sustained.
Proceedings of creditors’ meeting
14.—(1)  A resolution proposed at a creditors’ meeting (other than one to approve a proposed voluntary arrangement or any modification to a proposed voluntary arrangement) may be approved by ordinary resolution.
(2)  In the following cases, the chairperson of a creditors’ meeting must leave out of account a creditor’s vote (or any part of the vote) in a creditors’ meeting in respect of any claim (or any part of the claim):
(a)where written notice of the claim was not given to the chairperson of the creditors’ meeting before or at the creditors’ meeting;
(b)where the claim (or any part of the claim) is secured;
(c)where the claim (or any part of the claim) is in respect of a debt wholly or partly on, or secured by, a current bill of exchange or promissory note, unless the creditor is willing to —
(i)treat the liability of every person (being a person against whom a bankruptcy order has not been made or which has not gone into liquidation) who is liable on the bill or note antecedently to the debtor as security in the creditor’s hands; and
(ii)estimate the value of the security and deduct it from the creditor’s vote for the purpose of entitlement to vote at the creditors’ meeting (but not of any distribution under the arrangement).
(3)  Any decision of the chairperson of a creditors’ meeting under paragraph (2) is subject to appeal to the Court by any creditor or the debtor in question.
(4)  If the chairperson of a creditors’ meeting is in doubt whether a creditor’s claim (or any part of the claim) should be left out of account, the chairperson must mark a creditor’s claim (or any part of the claim) as objected to and allow the vote to be taken into account, subject to the vote (or any part of the vote) being subsequently taken out of account if the objection to the claim is sustained.
(5)  If the chairperson of a creditors’ meeting uses a proxy contrary to regulation 12(2), the chairperson’s vote with that proxy is to be left out of account.
Adjournments
15.—(1)  Subject to paragraph (3), the chairperson of a creditors’ meeting may adjourn the meeting from time to time if —
(a)the requisite majority for the approval of the proposal (with or without modification) has not been obtained; or
(b)the chairperson for any other reason thinks fit to do so.
(2)  Subject to paragraph (3), the chairperson of a creditors’ meeting must adjourn the meeting from time to time if it is so resolved by the meeting.
(3)  The date of any adjourned meeting must be no later than 14 days after the date of the first meeting.
(4)  The chairperson of a creditors’ meeting that is adjourned must give notice of the adjournment to the Court.
(5)  If a proposal is not approved (with or without modification) by a creditors’ meeting upon the expiry of 14 days after the date of the first meeting, the proposal is treated as if the creditors’ meeting has declined to approve it.