Section 460. Arrangement binding on creditors

(1) Any arrangement entered into between a company about to be or in the course of being wound up and its creditors shall, subject to the right of appeal under this section, be binding on—

(a) the company if sanctioned by a special resolution; and

(b) the creditors if acceded to by three-fourth in value and one-half in number of the creditors, every creditor for under five hundred ringgit being reckoned in value only.

(2) A creditor shall be accounted a creditor for value for such sum as upon an account fairly stated, after allowing the value of security or liens held by the creditor and the amount of any debt or set off owing by the creditor to the debtor, appears to be the balance due to the creditor.

(3) Any dispute with regards to the value of any such security or lien or the amount of such debt or set off may be settled by the Court on the application of the company, liquidator or creditor.

(4) Any creditor or contributory may appeal to the Court against the arrangement, within three weeks from the completion of the arrangement, and the Court may amend, vary or confirm the arrangement as the Court thinks just.