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examination, or directing that the debtor be examined on such terms, in such manner, and at such place as to the court seems expedient.
Compositions and Schemes of Arrangement.
ment.
20.-(1) Where a debtor intends to make a pro- Compositions posal for a composition in satisfaction of his debts, and schemes or a proposal for a scheme of arrangement of his of arrange- affairs, he shall, within four days of submitting his 4 & 5 Geo. 5, statement of affairs, or within such time thereafter c. 59, as the Official Receiver may fix, lodge with the Official s. 16 (1). Receiver a proposal in writing, signed by him, embody- ing the terms of the composition or scheme which he is desirous of submitting for the consideration of his creditors, and setting out particulars of any sureties or securities proposed.
(2) In such case the Official Receiver shall hold a 4 & 5 Geo. 5, meeting of creditors, before the public examination of c. 59, the debtor is concluded, and send to each creditor, s. 16 (2). before the meeting, a copy of the debtor's proposal with a report thereon; and if at that meeting a majority in number and three fourths in value of all the creditors who have proved resolve to accept the proposal, it shall be deemed to be duly accepted by the creditors, and when approved by the court shall be binding on all the creditors.
(3) The debtor may at the meeting amend the 4 & 5 Geo. 5, terms of his proposal, if the amendment is, in the c. 59, opinion of the Official Receiver, calculated to benefit s. 16 (3). the general body of creditors.
(4) Any creditor who has proved his debt may 4 & 5 Geo, 5, assent to or dissent from the proposal by a letter c. 59, addressed to the Official Receiver so as to be received s. 16 (4). by him not later than the day preceding the meeting, and any such assent or dissent shall have effect as if the creditor had been present and had voted at the meeting.
(5) The debtor or the Official Receiver may, after 4 & 5 Geo. 5, the proposal is accepted by the creditors, apply to the c. 59, court to approve it, and notice of the time appointed s. 16 (5). for hearing the application shall be given to each creditor who has proved.
(6) The application shall not be heard until after 4 & 5 Geo. 5, the conclusion of the public examination of the c. 59, debtor. Any creditor who has proved may be heard s. 16 (6). by the court in opposition to the application, notwith- standing that he may at a meeting of creditors have voted for the acceptance of the proposal.
(7) For the purpose of approving a composition or 4 & 5 Geo. 5, scheme by joint debtors, the court may, if it thinks c. 59, fit, and on the report of the Official Receiver that it s. 16 (7). is expedient so to do, dispense with the public ex- amination of any of the joint debtors if they are or any one of them is prevented from attending the ex- amination by illness or absence from the Colony but one at least of such joint debtors shall be publicly examined.
(8) The court shall, before approving the proposal, 4 & 5 Geo. 5, hear a report of the Official Receiver as to the terms c. 59,
s. 16 (8). thereof, and as to the conduct of the debtor, and any objections which may be made by or on behalf of any creditor.
(9) If the court is of opinion that the terms of the 4 & 5 Geo. 5, proposal are not reasonable, or are not calculated to c. 59, benefit the general body of creditors, or in any case in s. 16 (9). which the court is required, where the debtor is
adjudged bankrupt, to refuse his discharge, the court shall refuse to approve the proposal.
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