1964_BANKRUPTCY_ORDINANCE — Page 26

18

Power of court to dispense

with public

examination of debtor on application of Official Receiver.

Compositions and schemes of arrangement. 1914 c. 59, s. 16.

Rules.

Forms 64, 65, 66.

CAP. 6

Bankruptcy

[1986 Ed.

19A. (1) Notwithstanding section 19 the court may, on the application of the Official Receiver, make an order dispensing with the public examination of the debtor.

(2) Before making an application under subsection (1) the Official Receiver shall-

(a) publish notice of his intention to make the application in

the Gazette; and

(b) give notice of his intention to make the application to every

creditor who has tendered a proof.

(3) Any creditor who has tendered a proof and wishes to oppose the making of an order under subsection (1) shall, within 21 days after the date of publication of a notice pursuant to subsection (2), give notice in writing to the Official Receiver of his intention to oppose the making of an order and may thereafter appear and oppose the making of an order.

(4) Before making an order under subsection (1) the court shall consider a report of the Official Receiver made in the manner prescribed.

(Added, 1 of 1976, s. 2)

Compositions and schemes of arrangement

20. (1) Where a debtor intends to make a proposal for a composition in satisfaction of his debts or a proposal for a scheme of arrangement of his affairs, he shall, within 4 days of submitting his statement of affairs or within such time thereafter as the Official Receiver may fix, lodge with the Official Receiver a proposal in writing, signed by him, embodying 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 meeting of creditors before the public examination of the debtor is concluded, and send to each creditor 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 terms of his proposal, if the amendment is in the opinion of the Official Receiver calculated to benefit the general body of creditors.

(4) Any creditor who has proved his debt may assent to or dissent from the proposal by a letter addressed to the Official Receiver so as to be received 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.