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THE HONGKONG GOVERNMENT GAZETTE, 7TH NOVEMBER, 1891.
(2.) The statement shall be made and deposited with the Official Receiver within seven days of the making of the receiving order unless the time be extended by the Court.
(8.) If the debtor fails without reasonable excuse to comply with the requirements of this section he may be punished for a contempt of Court and the Court may on the application of the Official Receiver or of any creditor a ljudge him bankrupt forthwith.
Public Examination of Debtor.
17. (1.) As soon as may be after the time limited for filing of the statement of affairs has been submitted the Court shall hold a public sitting on a day to be appointed for the examination of the debtor and the debtor shall attend thereat and shall be examined as to his conduct dealings and property.
(2.) The Official Receiver and any creditor may take part in the examination of the debtor and the Court may put such questions as it may deem expedient.
(3.) The Official Receiver may if specially authorised by the Court employ a Solicitor with or without Counsel to condnet such examination but no Solicitor or Counsel shall be allowed to take part in the examination on behalf of the debtor.
(4.) The debtor shall be examined on oath and it shall be his duty to answer all such questions as the Court may put or allow to be put to him and it shall not be lawful for the debtor to refuse to answer any question on the ground that the answer might tend to criminate him under the provisions of this Ordinance.
(5.) Such notes of the examination as the Court thinks proper shall be taken down in writing and shall be read over to and signed by the debtor and may thereafter be used in evidence against him.
(6.) The examination may be adjourned from time to time and shall not be concluded until after the day appointed for the first meeting of creditors.
(7.) The examination may be held by a Commissioner of the Court if the Court shall so order and in such case the Commissioner appointed shall have all the powers of the Court with respect to the examination.
Composition or Scheme of Arrangement.
18. (1.) The creditors may at the first meeting or any adjournment thereof by special resolution resolve to entertain a proposal for a composition in satisfaction of the debts due to them from the debtor or a proposal for a scheme of arrangement of the debtor's affairs.
(2.) The composition or scheme shall not be binding on the creditors unless it is confirmed by a resolution passed (by a majority in numbers representing three-fourths in value of all the creditors who have proved) at a subsequent meeting of the creditors and is approved by the Court.”
(3.) The subsequent meeting shall be summoned by the Official Receiver by not less than seven days' notice and shall not be held until after the public examination of the debtor is concluded. The notice shall state generally the terms of the proposal and shall be given by posting a letter in the Form No. 17 of the Schedule A hereto or by a notice in writing to each creditor who has proved and by advertising the subsequent meeting in the Gazette and at least in one local newspaper.
(4.) The debtor or the Official Receiver may after the composition or scheme is accepted by the creditors apply to the Court to approve it.
(5.) If the Court is of opinion that the terms of the composition or scheme are not reasonable or are not calculated to benefit the general body of creditors or if the Court is dissatisfied with the conduct of the debtor the Court may in its discretion refuse to approve the composition or scheme.
(6.) If the Court approves of the composition or scheme the approval thereof may be testified by the seal of the Court being attached to the instrument containing the terms of the composition or scheme or by the terms being the terms thereof shall be embodied in an order of the Court in Form No. 14 of Schedule A and a composition or scheme accepted and approved as aforesaid shall be binding on all the creditors so far as relates to any debts due to them from the debtor and provable in bankruptcy. Provided that if any such debt were incurred by fraud or forbearance of the payment thereof before the date of the arrangement were obtained by fraud the debtor shall remain liable for the unpaid balance unless the defrauded creditor were an
Public examination of debtor.
Composition
or arrange- ment.
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