Hong Kong Ordinances

BANKRUPTCY ORDINANCE - SECT 20J

Challenge of meeting's decision

(1) Subject to this section, an application to the court may be made, by any
of the persons specified in subsection (2), on one or both of the following
grounds-

   (a)  that a voluntary arrangement approved by a creditors' meeting summoned
        under section 20E unfairly prejudices the interests of a creditor of
        the debtor;

   (b)  that there has been some material irregularity at or in relation to
        such a meeting.

(2) The persons who may apply under this section are-

   (a)  the debtor;

   (b)  a person entitled, in accordance with the rules, to vote at the
        creditors' meeting;

   (c)  the nominee (or his replacement under section 20K(3)); and

   (d)  if the debtor is an undischarged bankrupt, the trustee or the
        Official Receiver.

(3) An application under this section shall not be made after the end of the
period of 28 days beginning with the day on which the report of the creditors'
meeting was made to the court under section 20G.

(4) Where on an application under this section the court is satisfied as to
either of the grounds mentioned in subsection (1), it may do one or both of
the following-

   (a)  revoke or suspend any approval given by the meeting;

   (b)  give a direction to any person for the summoning of a further meeting
        of the debtor's creditors to consider any revised proposal he may make
        or, in a case falling within subsection (1)(b), to reconsider his
        original proposal.

(5) Where at any time after giving a direction under subsection

(4)(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.

(6) Where the court gives a direction under subsection (4)(b), it may also
give a direction continuing or, as the case may require, renewing, for such
period as may be specified in the direction, the effect in relation to the
debtor of any interim order.

(7) In any case where the court, on an application made under this section
with respect to a creditors' meeting, gives a direction under subsection
(4)(b) or revokes or suspends an approval under subsection

(4)(a) or (5), the court may give such supplemental directions as it thinks
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.

(8) Except in pursuance of the preceding provisions of this section, an
approval given at a creditors' meeting summoned under section  20E is not
invalidated by any irregularity at or in relation to the meeting. (Added 76 of
1996 s. 13)