Singapore Government
Link to AGC Website
Home | Search | Browse | Results | My Preferences
 
Contents

Long Title

Part I PRELIMINARY

Part II CONSTITUTION, PROCEDURE AND POWERS OF COURT

Jurisdiction

Procedure

Part III OFFICIAL ASSIGNEE

Part IV TRUSTEE IN BANKRUPTCY

Part V VOLUNTARY ARRANGEMENTS

Moratorium for insolvent debtor

Consideration and implementation of debtor’s proposal

Part VI PROCEEDINGS IN BANKRUPTCY

Bankruptcy petitions and bankruptcy orders

Protection of debtor’s property

Part VII ADMINISTRATION IN BANKRUPTCY

Bankruptcy

Inquiry into bankrupt’s affairs, dealings and property

Proof of debts

Composition or scheme of arrangement

Effect of bankruptcy on antecedent transactions

Possession, control and realisation of bankrupt’s property

Distribution of property

Part VIII ANNULMENT AND DISCHARGE

Part IX DUTIES, DISQUALIFICATION AND DISABILITIES OF BANKRUPT

Part X BANKRUPTCY OFFENCES

Part XI MISCELLANEOUS PROVISIONS

THE SCHEDULE Transitional Provisions and Savings

Legislative History

Comparative Table

 
Slider
Left Corner
Print   Link to In-Force Version
On 25/07/2014, you requested the version as published on or before 25/07/2014.
Slider
Consideration and implementation of debtor’s proposal
Decision of creditors’ meeting
51.
—(1)  A creditors’ meeting summoned under section 50 may, if the meeting thinks fit, by special resolution resolve to approve the proposed voluntary arrangement, whether with or without modification.
(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.
(4)  No modification under subsection (3) shall alter the proposal to such an extent that it ceases to be a proposal for a voluntary arrangement by the debtor.
(5)  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.
(6)  The meeting shall not, without the concurrence of the preferential creditor concerned, approve any proposal or any modification thereto under which —
(a)
any debt of the debtor, not being a preferential debt, is to be paid in priority to any preferential debt of the debtor; or
(b)
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.
(7)  Every meeting shall be conducted in accordance with the prescribed rules.
(8)  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.
Report of decisions to court
52.
—(1)  After the conclusion of the creditors’ meeting summoned under section 50, the nominee shall report the result thereof to the court and shall serve a copy of the report on such persons as may be prescribed.
(2)  Where the meeting has declined to approve the debtor’s proposal, the court may discharge any interim order which is in force in relation to the debtor.
Effect of approval
53.
—(1)  Where the creditors’ meeting summoned under section 50 has approved the proposed voluntary arrangement, whether with or without modifications, the approved arrangement shall —
(a)
take effect as if made by the debtor at the meeting; and
(b)
bind every person who had notice of and was entitled to vote at the meeting, whether or not he was present or represented thereat, as if he were a party to the arrangement.
(2)  Subject to section 54, the interim order in force in relation to the debtor shall cease to have effect at the end of 28 days from the date the report was made to the court under section 52.
(3)  Where proceedings on a bankruptcy petition have been stayed by an interim order which ceases to have effect under subsection (2), that petition shall, unless the court otherwise orders, be deemed to have been dismissed.
Review of meeting’s decision
54.
—(1)  Any debtor, nominee or person entitled to vote at a creditors’ meeting summoned under section 50 may apply to the court for a review of the decision of the meeting on the ground that —
(a)
the voluntary arrangement approved by the meeting unfairly prejudices the interests of the debtor or any of the debtor’s creditors; or
(b)
there has been some material irregularity at or in relation to the meeting.
(2)  Upon hearing an application under subsection (1), the court may, if it thinks fit, do one or both of the following:
(a)
revoke or suspend any approval given by the meeting;
(b)
direct any person to summon a further meeting of the debtor’s creditors to consider any revised proposal the debtor may make or, in a case falling within subsection (1)(b), to reconsider the original proposal of the debtor.
(3)  No application under this section shall be made after 28 days from the date the report was made to the court under section 52.
(4)  Where at any time after giving a direction under subsection (2)(b) for the summoning of a meeting to consider a revised proposal the court is satisfied that the debtor does not intend to submit such a proposal, the court shall revoke the direction and revoke or suspend any approval given at the previous meeting.
(5)  Upon giving a direction under subsection (2)(b), the court may, if it thinks just, extend the validity of any interim order in relation to the debtor for such period as it may think fit.
(6)  Upon giving a direction or revoking or suspending an approval under this section, the court may give such supplemental directions as it may think fit and, in particular, directions with respect to —
(a)
things done since the meeting under any voluntary arrangement approved by the meeting; and
(b)
such things done since the meeting as could not have been done if an interim order had been in force in relation to the debtor when they were done.
(7)  Except in pursuance of this section, no approval given at a creditors’ meeting summoned under section 50 shall be invalidated by reason only of any irregularity at or in relation to the meeting.
Implementation and supervision of approved voluntary arrangement
55.
—(1)  Where a voluntary arrangement approved by a creditors’ meeting summoned under section 50 has taken effect, the nominee shall supervise the implementation of the voluntary arrangement.
(2)  If the debtor or any of his creditors is dissatisfied by any act, omission or decision of the nominee in his supervision of the implementation of the voluntary arrangement, the debtor or creditor may apply to the court to review that act, omission or decision.
(3)  On hearing an application under subsection (2), the court may —
(a)
confirm, reverse or modify any act or decision of the nominee; or
(b)
give such directions to the nominee or make such order as it thinks fit.
(4)  The nominee may apply to the court for directions in relation to any particular matter arising under the voluntary arrangement.
(5)  The court may, whenever —
(a)
it is expedient to appoint a person to carry out the functions of the nominee; and
(b)
it is inexpedient, difficult or impracticable for such an appointment to be made without the assistance of the court,
make an order appointing a person who is qualified to act as a nominee, either in substitution for the existing nominee or to fill a vacancy.
Consequence of failure by debtor to comply with voluntary arrangement
56.  Where a debtor fails to comply with any of his obligations under a voluntary arrangement, the nominee or any creditor bound by the voluntary arrangement may present a bankruptcy petition against the debtor in accordance with Part VI.