4 Meetings of the Creditors

Meetings of the Creditors

4 (1) For the purposes of section 256, the notice of meeting of creditors shall be issued to all creditors in Form K and not less than twenty one clear days shall be there between the date of issue of the notice and the date of the meeting.

(2) The quorum for a meeting of creditors shall be the presence in person or by proxy of creditors representing not less than fifty one percent of value of debts owed by the sick company to the creditors or creditors representing such other percentage of value of debts owned by the sick company to that creditors as may be ordered by the Tribunal and even the presence of single creditor may be sufficient to form a valid quorum.

(3) The interim administrator shall chair the meetings of the creditors. 

(4) Decisions in the meeting of creditors shall be made by requisite majority of votes and value of debt owed by the sick company shall determine the number of votes of a particular creditor. The decision of the interim administrator shall be final as regards the value of debt owed to a particular creditor by the sick company. Any accidental omission to consider, include or issue notice to one or more unsecured creditors shall not invalidate any action taken by the interim administrator or as the case may be, by the creditors in good faith.