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Report No. 26

Chapter V

Compositions and Schemes of Arrangement

33. Submission of proposal and acceptance by creditors.-(1) An insolvent may, at any time after the making of an order of adjudication, submit, to the Official Assignee in the prescribed form, a proposal for a composition in satisfaction of his debts or a proposal for a scheme of arrangement of his affairs, and such proposal shall be submitted by the Official Assignee to a meeting of creditors.

[Section 38(1), P.A.] [Cf. section 28(1), P.T.A.]

(2) The Official Assignee shall send to each creditor who is mentioned in the insolvent's schedule, or who has tendered a proof before the meeting, a copy of the insolvent's proposals with a report thereon.

[Section 38(2), part, P.A.][Cf. section 28(2), part, P.T.A.]

(3) The insolvent may at the meeting amend the terms of his proposal, if the amendment is, in the opinion of the Official Assignee, calculated to benefit the general body of creditors.

[Section 38(3), P.A.] [Cf. section 28(3), P.T.A.]

(4) If on a consideration of the proposal a majority in number and three-fourths in value of all the creditors whose debts are proved, resolve to accept the proposal, the same shall be deemed to be duly accepted by the creditors.

[Section 38(2), part, P.A.] [Cf. section 28(2), part, P.T.A.]

(5) Any creditor who has proved his debt may assent to or dissent from the proposal by a letter in the prescribed form addressed to the Official Assignee 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 that meeting.

[Section 28(4), P.T.A.]

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