Section 421. Consideration of proposals by creditors’ meeting

(1) A meeting of creditors, summoned under paragraph 420(1)(b), shall decide whether to approve the judicial manager’s proposal.

(2) The proposal shall be approved by seventy-five per centum of the total value of creditors whose claims have been accepted by the judicial manager, present and voting at the meeting either in person or by proxy and the proposal may be approved with modifications subject to the consent of the judicial manager to each modification.

(3) Once approved by the required majority under subsection (2), the proposal, with or without modifications, shall be binding on all creditors of the company whether or not the creditors have voted in favour of the proposal.

(4) The judicial manager shall report the result of the meeting to the Court and shall give notice of that result to the Registrar and to such other persons or bodies as the Court may approve.

(5) If a report is given to the Court under subsection (4) that the meeting has declined to approve the judicial manager’s proposal with or without modification, the Court may—

(a) by order discharge the judicial management order;

(b) make any consequential provision in the judicial management order as the Court thinks fit;

(c) adjourn the hearing conditionally or unconditionally; or

(d) make an interim order or any other order that the Court thinks fit.

(6) A copy of any order of the Court made under subsection (5) shall be published in one widely circulated newspaper in Malaysia in the national language and one widely circulated newspaper in Malaysia in the English language.

(7) Where the judicial management order is discharged, the judicial manager shall send an office copy of the order to the Registrar within seven days from the order.

(8) A judicial manager who, without reasonable excuse, contravenes subsection (7) commits an offence and, in the case of a continuing offence, to a further fine not exceeding five hundred ringgit for each day during which the offence continues after conviction.