Singapore legislation
Clause 51
Clause 51
Decision of creditors’ meeting
(1)
A creditors’ meeting summoned under section 50 shall decide whether to approve the proposed voluntary arrangement.
(2)
The meeting shall not approve the proposed voluntary arrangement with any modification unless the debtor has consented to such modification.
(3)
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 but no modification shall alter the proposal to such an extent that it ceases to be a proposal for a voluntary arrangement by the debtor.
(4)
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.
(5)
The meeting shall not, without the concurrence of the preferential creditor concerned, approve any proposal or any modification thereto under which —
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.
(6)
Every meeting shall be conducted in accordance with the prescribed rules.
(7)
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.