MEETINGS OF CREDITORS RULES

MEETINGS OF CREDITORS RULES

MEETINGS OF CREDITORS RULES

(Cap. 6. section 17)

[1 January 1932.1

1. The first meeting of creditors shall be summoned for a day
within 3 months 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 4 clear days' notice of the time and place thereof in the Gazette
and in a local paper.

3. The Official Receiver shall also as soon as practicable send to
each creditor mentioned in the debtor's statement of affairs a notice of
the time and place of the first meeting of creditors, 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 accordance with the provisions of the
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 chairman at the first meeting, and at subsequent meetings until the
appointment of a trustee other than the Official Receiver, when such
trustee shall be chairman.

8. A person shall 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 24 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 particulars of his security,
the date when it was given and the value at which he assesses it, and
shall be entitled to vote only in respect of the balance (if any) due to
him 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 current bill of 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 28 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 up the security for the benefit of the creditors generally
on payment of the value so estimated, with an addition thereto of 20 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 20 per cent 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 in the event of the objection being sustained.

15. A creditor 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 his solicitor or
solicitors. or of any commissioner to administer oaths in the High 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 in his regular employment or to his solicitor or
solicitors. In such case, the instrument of proxy shall state the relation
in which the person to act 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 composition 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;

(e)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 24 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 trusteeship or receivership, except
by the direction of a meeting of creditors, the court shall have power, if
it thinks fit, to order that no remuneration 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 3 creditors, or all the creditors if their number does not
exceed 3.





25. If within half an hour from the time appointed for the
meeting a quorum of creditors is not present or represented, 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 7 nor more than 21 days after the day
first appointed.

26. The chairman of every meeting shall cause minutes of the
proceedings at the meeting to be drawn up and fairly entered in a
record kept for that purpose and the minutes shall be signed by him
or by the chairman 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
receiver 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 required for passing any resolution
affecting the conduct of the trustee.

29. These rules may be cited as the Meetings of Creditors
Rules.
10 of 1931. First Schedule. L.N. 48/64. L.N. 37/76. L.N. 142/85. Form 29. Bankruptcy (Forms) Rules. L.N. 48/64. L.N. 37/76. L.N. 142/85. Forms 30, 31. Bankruptcy (Forms) Rules. (Cap. 6.) Forms 31, 32, 43, 44, Bankruptcy (Forms) Rules. Forms 50, 51. Bankruptcy (Forms) Rules. L.N. 48/64. Form 37, Bankruptcy (Forms) Rules. Form 36, Bankruptcy (Forms) Rules.

10 of 1931. First Schedule. L.N. 48/64. L.N. 37/76. L.N. 142/85. Form 29. Bankruptcy (Forms) Rules. L.N. 48/64. L.N. 37/76. L.N. 142/85. Forms 30, 31. Bankruptcy (Forms) Rules. (Cap. 6.) Forms 31, 32, 43, 44, Bankruptcy (Forms) Rules. Forms 50, 51. Bankruptcy (Forms) Rules. L.N. 48/64. Form 37, Bankruptcy (Forms) Rules. Form 36, Bankruptcy (Forms) Rules.

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