BODIES CORPORATE (OFFICIAL LIQUIDATIONS) ACT - 1963 (ACT 180)

Section - 23 - First Meeting of Creditors

(1) The liquidator shall call a first meeting of creditors for a date not later than six weeks after the publication of the winding up order, and shall give such notice of the meeting as may be practicable to each creditor who is mentioned in the company's statement of affairs or who, not being so mentioned, has lodged a proof of debt.

(2) So far in advance as may be practicable, the liquidator shall give to every creditor of the company a copy of the company's statement of affairs and of any proposals for an arrangement with creditors lodged by him, together with any observations thereon that the liquidator may wish to make.

(3) The liquidator shall put to the meeting such questions as he considers appropriate; and where the company has proposed an arrangement with creditors the meeting shall be asked to approve or reject such proposal.

(4) An arrangement with creditors shall not be taken to be approved unless it has secured at least three-quarters of the votes cast.

(5) The meeting shall be closed not later than eight weeks after the publication of the winding up order.

(6) At any meeting of creditors of a company the meeting shall not be competent to act for any purpose unless at least three creditors with admitted proofs of debt, or all such creditors if they are less than three, are present either in person or by representatives holding proxies.

(7) Where there is no quorum within half an hour after the time appointed for the meeting of creditors, the liquidator shall adjourn the meeting to such date as he may determine not being less than seven nor more than fourteen days thereafter; and if there is still no quorum within half an hour after the time appointed for the meeting the meeting shall be taken to be cancelled.

(8) The cancellation of a meeting under the immediately preceding subsection shall not prevent the Court from considering and determining any matter as if the meeting had been held and closed on the day on which it was cancelled.

(9) The provisions of the immediately preceding subsection shall not be deemed to authorise the Court to confirm an arrangement with creditors which has not been approved by the first meeting of creditors.

(10) The meeting of creditors shall be presided over by the liquidator and at any such meeting each creditor with an admitted proof shall be entitled to be heard either in person or by a representative holding a proxy.

(11) Save as otherwise provided in this Act, questions at a meeting of creditors shall be decided by a simple majority of votes cast and each creditor with an admitted proof shall be entitled to one vote for each complete pound of the net amount of his debt as shown in his proof of debt at the time when the meeting opens.

(12) For the purposes of voting under this section, the net amount of a debt shall be calculated by deducting the following amounts, if any, from the total value of the debt owned to the creditor, namely,

(a) the total value of securities held by the creditor;

(b) the total value of obligations outstanding in the company's favour against the creditor;

(c) the amount of every dividend to which the creditor has become entitled.