MEETING OF CREDITORS RULES

MEETING OF CREDITORS RULES

BANKRUPTCY.

Subsidiary legislation under this Chapter, with subse-
quent amendments (if any) incorporated, is set out as
follows-
Page
Meeting of Creditors Rules . .......... ... ... 352
Proof of Debts Rules .................. ... ... ... 356
Bankruptcy Rules ...................... ... ... 361

MEETINGS OF CREDITORS RULES.

(Cap. 6, section 17).
(Ordinance No. 10 of 1931).

[Ist Jan., 1932.]

1. The first meeting of creditors shall be summoned
for a day not later than fourteen days after the date of the
receiving order, unless the court for any special reason deems
it expedient that the meeting be summoned for a later day.

2. The Official Receiver shall summon the meeting by
giving not less than four clear days' notice of the tinic and
place thereof in the Gazette and in a local paper.

3. The Official Receiver shall also as soon as prac-
ticable send to each creditor mentioned in the debtor's
statement of affairs a notice of the time and place of the first
meeting of ceeditors, but the proceedings at the first meeting
shall not be invalidated by reason of' any such notice not
having been sent or received before the meeting.

4. The meeting shall be held at the office of the Official
Receiver.

5. The Official Receiver or the trustee may at any time
summon a meeting of creditors, and shall do so whenever so
directed by the court or so requested by a creditor in accord-
ance with the provisions of the Bankruptcy Ordinance.





6. Meetings subsequent to the first meeting shall be
summoned by sending notice of the time and place thereof to
each creditor at the address given in his proof, or if he has
not proved, at the address given in the debtor's statement
of affairs, or at such other address as may be known to the
person summoning the meeting.

7. The Official Receiver or some person nominated by
him shall be the chairnian at the first meeting, and at subse-
quent meetings until the appointment of a trustee other than
the Official Receiver, when such trustee shall be chairman.

8. A person shail not be entitled to vote as a creditor
at the first or any other meeting of creditors unless he has
duly proved a debt provable in bankruptcy to be due to him
from the debtor and the proof has been duly lodged twenty-
four hours at least before the time appointed for the meeting.

9. A creditor shall not vote at any such meeting in
respect of any unliquidated or contingent debt or any debt
the value of which is not ascertained.

10. For the purpose of voting, a secured creditor shall,
unless he surrenders his security, state in his proof the parti-
culars of his security, the date when it was given and the
value at which lie assesses it', and shall be entitled to vote
only in respect of the balance (if any) due to hirn after
deducting the value of his security. If he votes in respect
of his whole debt he shall be deemed to have surrendered his
security unless the court on application is satisfied that the
omission to value the security has arisen from inadvertence.

11. A creditor shall not vote in respect of any debt on
or secured by a currejit bill ot exchange or promissory note
held by him unless he is willing to treat the liability to him
thereon of every person who is liable thereon antecedently
to the debtor, and against whom a receiving order has not
been made, as a security in his hands and to estimate the
value thereof and for the purposes of voting, but not for the
purposes of dividend, to deduct it from his proof.

12. It shall be competent to the trustee or to the Official
Receiver, within twenty-eight days after a proof estimating
the value of a security as aforesaid has been made use of in





voting at any meeting, to require the creditor to give tip the
security for the benefit of the creditors generally on payment
of the value so estimated, with an addition thereto of twenty
per cent: Provided that where a creditor has put a value
on such security he may, at any time before he has been
required to give up such security as aforesaid, correct such
valuation by a new proof and deduct such new value from
his debt, but in that case such addition of twenty, per ceizt
shall not be made if the trustee requires the security to be
given up.

13. If a receiving order is made against one partner of
a firm, any creditor to whom that partner is indebted jointly
with the other partners of the firm, or any of them, may
prove his debt for the purpose of voting at any meeting of
creditors and shall be entitled to vote thereat.

14. The chairman of a meeting shall have power to
admit or reject a proof for the purpose of voting but his
decision shall be subject to appeal to the court. If he is in
doubt whether the proof of a creditor should be admitted or
rejected he shall mark the proof as objected to and shall
allow the creditor to vote, subject to the vote being declared
invalid m the event of the objection being sustained.

15. A credito may vote either in person or by proxy.

16. Every instrument of proxy shall be in the prescribed
form and shall be issued by the Official Receiver or, after
the appointment of a trustee, by the trustee, and every
insertion therein shall be in the handwriting of the person
giving the proxy, or of any manager or clerk or other person
in his regular employment, or of any commissioner to ad-
minister oaths in the Supreme Court, or of the Official
Receiver.

17. General and special forms of proxy shall be sent to
the creditors together with a notice summoning a meeting of
creditors, and neither the name nor the description of the
Official Receiver or of any other person shall be printed or
inserted in the body of any instrument of proxy before it is
so sent.

18. A creditor may give a general proxy to his manager
or clerk or any other person inhis regular employment or





to his solicitor or solicitors. In such case the instrument of
proxy shall state the relation in which the person to nct
thereunder stands to the creditor.

19. A creditor may give a special proxy to any person
to vote at any specified meeting or adjournment thereof on
all or any of the following matters-
(a) for or against any specific proposal for a cornposi-
tion or scheme of arrangement;
(b) for or against the appointment of any specified
person as trustee or as member of the, committee
of inspection, or for or against the continuance in
office of any specified person as trustee or member
of a committee of inspection ;
(c) on all questions relating to any matter other than
those above referred to, arising at any specified
meeting or adjournment. thereof.

20. A proxy shall not be used unless it is deposited
with the Official Receiver or trustee twenty-four hours
before the meeting at which it is to be used.

21. Where it appears to the satisfaction of the court
that any solicitation has been used by or on behalf of a trustee
or receiver in obtaining proxies, or in procuring the trustee-
ship or receivership, except by the direction of a meeting of
creditors, the court shall have power, if it thinks fit, to order
that shall be allowed to the person by
whom or on whose behalf such solicitation may have been
exercised, notwithstanding any resolution of the committee
of inspection or of the creditors to the contrary.

22. A creditor may appoint the Official Receiver to act in
manner prescribed as his general or special proxy.

23. The chairman of a meeting may, with the consent
of the meeting, adjourn the meeting from time to time and
from place to place.

24. A meeting shall not be competent to act for any
purpose, except the election of a chairman, the proving of
debts and the adjournment of the meeting, unless there are
present or represented thereat at least three creditors, or
all the creditors if their number does not exceed three.





25. If within half an hour from the time appointed for
the meeting a quorum of creditors is not present or repre-
sented, the meeting shall be adjourned to the same day in
the following week at the same time and place or to such
other day as the chairman may appoint, being not less than
seven nor more than twenty-one days after the day first
appointed.

26. The chairman of every meeting shall cause minutes
of the proceedings at the meeting to be drawn tip and
fairly entered in a record kept for that purpose and the
rdinutes shall be signed by him or by thechairInan of the
next ensuing meeting.

27. No person acting under either a general or a
special proxy shall vote in favour of any resolution which
would directly or indirectly place himself or his partner
or employer in a position to receive any remuneration out
of the estate of the debtor otherwise than as a creditor
rateably with the other creditors of the debtor: Provided
that where any person holds special proxies to vote for the
appointment of himself as trustee he may use the said
proxies and vote accordingly.

28. The vote of the trustee or of his partner, clerk,
solicitor or solicitor's clerk, either as creditor or as proxy
for a creditor, shall not be reckoned in the majority re-
quired for passing any resolution affecting the conduct of
the trustee.

29. These rules may be cited as the Meetings of Creditors
Rules.

PROOF OF DEBTS RULES. -

(Cap. 6, section 36).
(Ordinance No. 10 Of 1930.
[1st January, 1932.]

Proof in ordinary cases.

1. Every creditor shall prove his debt as soon as may
be after the making of a receiving order.
Regulations-Fraser, vol. 3, p. 1136. Form 29, Bankruptcy Rules. Forms 30, 31, Bankruptcy Rules. (Cap. 6) Forms 31, 32, 43, 44. Bankruptcy Rules. [r. 12 cont.] Forms 50, 51. Bankruptcy Rules. Forms 37, Bankruptcy Rules. Regulations-Fraser, vol. 3, p. 1141.

Regulations-Fraser, vol. 3, p. 1136. Form 29, Bankruptcy Rules. Forms 30, 31, Bankruptcy Rules. (Cap. 6) Forms 31, 32, 43, 44. Bankruptcy Rules. [r. 12 cont.] Forms 50, 51. Bankruptcy Rules. Forms 37, Bankruptcy Rules. Regulations-Fraser, vol. 3, p. 1141.

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