ACT 125

COMPANIES ACT 1965 (REVISED - 1973)

PART X - WINDING UP

DIVISION 3 - VOLUNTARY WINDING UP

Subdivision (3) - Provisions applicable only to Creditors' Voluntary Winding up

Section 260. Meeting of creditors.

(1) The company shall cause a meeting of the creditors of the company to be summoned for the day, or the day next following the day, on which there is to be held the meeting at which the resolution for voluntary winding up is to be proposed, and shall cause the notices of the meeting of creditors to be sent by post to the creditors simultaneously with the sending of the notices of the meeting of the company. (2) The company shall convene the meeting at a time and place convenient to the majority in value of the creditors and shall— (a) give to the creditors at least seven clear days' notice by post of the meeting; and (b) send to each creditor with the notice a statement showing the names of all creditors and the amounts of their claims. (3) The company shall cause notice of the meeting of the creditors to be advertised at least seven days before the date of the meeting in a newspaper circulating generally throughout Malaysia. (4) The directors of the company shall— (a) cause a full statement of the company's affairs showing in respect of assets the method and manner in which the valuation of the assets was arrived at, together with a list of the creditors and the estimated amount of their claims to be laid before the meeting of creditors; and (b) appoint one of their number to attend the meeting. (5) The director so appointed and the secretary shall attend the meeting and disclose to the meeting the company's affairs and the circumstances leading up to the proposed winding up. (6) The creditors may appoint one of their number or the director appointed under subsection (4) to preside at the meeting. (7) The chairman shall at the meeting determine whether the meeting has been held at a time and place convenient to the majority in value of the creditors and his decision shall be final. (8) If the chairman decides that the meeting has not been held at a time and place convenient to that majority the meeting shall lapse and a further meeting shall be summoned by the company as soon as is practicable. (9) If the meeting of the company is adjourned and the resolution for winding up is passed at an adjourned meeting, any resolution passed at the meeting of the creditors shall have effect as if it had been passed immediately after the passing of the resolution for winding up. (10) If default is made in complying with this section the company and any officer of the company who is in default shall be guilty of an offence against this Act. Penalty: Two thousand ringgit.