Bankruptcy Act · 2009 Revised Edition · Part V · Voluntary Arrangements
51. Decision of creditors’ meeting
Feedback & supportA creditors’ meeting summoned under section 50 may, if the meeting thinks fit, by special resolution resolve to approve the proposed voluntary arrangement, whether with or without modification.
special resolution
“special resolution” means a resolution passed by a majority in number and at least three-fourths in value of the creditors present personally or by proxy at a meeting of creditors and voting on the resolution;
The meeting shall not approve the proposed voluntary arrangement with any modification unless the debtor has consented to such modification.
debtor
“debtor” means the individual to whom a debt repayment scheme applies under this Part;
For the purpose of this section, a modification subject to which a proposed voluntary arrangement may be approved by a creditors’ meeting may confer the functions proposed to be conferred on the nominee on another person qualified to act as a nominee.
nominee
“nominee” means the person appointed by virtue of a debtor’s proposal for a voluntary arrangement under Part V to act as trustee or otherwise to supervise the implementation of the voluntary arrangement and includes —(a)any replacement of such person pursuant to a direction under section 49(3)(a) or an order under section 55(5); and(b)any person upon whom the functions of the nominee have been conferred by a creditors’ meeting pursuant to section 51(3);
No modification under subsection (3) shall alter the proposal to such an extent that it ceases to be a proposal for a voluntary arrangement by the debtor.
The meeting shall not approve any proposal or any modification thereto which affects the right of a secured creditor of the debtor to enforce his security, except with the concurrence of the secured creditor concerned.
secured creditor
“secured creditor”, in relation to a debtor, means a person holding a mortgage, pledge, charge or lien on or against the property of the debtor or any part thereof as security for a debt due to him from the debtor;
The meeting shall not, without the concurrence of the preferential creditor concerned, approve any proposal or any modification thereto under which —
creditor
“creditor”, in relation to a debtor proposing a voluntary arrangement under Part V, means a creditor to whom the debtor owes a debt provable in bankruptcy;
any debt of the debtor, not being a preferential debt, is to be paid in priority to any preferential debt of the debtor; or
any preferential debt of the debtor is to be paid in relation to any other preferential debt of the debtor other than in accordance with section 90.
Every meeting shall be conducted in accordance with the prescribed rules.
Any debtor who makes any false representation or commits any other fraud for the purpose of obtaining the approval of his creditors to a proposal for a voluntary arrangement shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 2 years or to both.