Singapore legislation
Section 357
Section 357
Creditors may accept composition or scheme by special resolution
(1)
Where a bankruptcy order has been made, the creditors who have proved their debts may, if they think fit —
at a general meeting of creditors; or
in writing,by special resolution, resolve to accept a proposal for a composition in satisfaction of the debts due to them under the bankruptcy, or for a scheme of arrangement of the bankrupt’s affairs.
(2)
A meeting under subsection (1)(a) is to be summoned by the Official Assignee by not less than 21 days’ notice.
(3)
A special resolution in writing under subsection (1)(b) is to be sought by a notice from the Official Assignee giving the creditors 21 days to reply.
(4)
Any notice under this section must state generally the terms of the proposal and must be accompanied by a report of the Official Assignee thereon.
(5)
Where a special resolution is sought at a general meeting of creditors under subsection (1)(a), any creditor who has proved the creditor’s debt may assent to or dissent from the composition or scheme by a letter addressed to the Official Assignee in the prescribed form, and attested by a witness, and sent or posted so as to be received by the Official Assignee not later than 3 days before the meeting, and a creditor so assenting or dissenting is taken as having been present and voting at that meeting.
(6)
Where a special resolution is sought in writing under subsection (1)(b), any creditor who has proved the creditor’s debt may assent to or dissent from the composition or scheme by a letter addressed to the Official Assignee, and sent or posted so as to be received by the Official Assignee not later than 21 days after the date of the Official Assignee’s notice.
(7)
The composition or scheme is not binding on the creditors unless the bankruptcy order to which it relates is discharged or annulled under section 358.
(8)
In this section, “special resolution” means —
in relation to a special resolution sought under subsection (1)(a), a resolution passed at a general meeting of creditors by a majority in number and at least three‑fourths in value of the creditors who have proved their debts, taking those creditors who do not attend personally or by proxy at the meeting as having voted in favour of the resolution; and
in relation to a special resolution sought under subsection (1)(b), a resolution approved in writing by a majority in number and at least three‑fourths in value of the creditors who have proved their debts, taking those creditors who fail to assent to or dissent from the composition or scheme in writing as having assented to the resolution.