The section re-enacts existing law under which the bankrupt calls a meeting of his creditors before the court in order to make an offer of composition to them — subsection (1). Only one meeting is provided for under the Bill. The second meeting is being abolished as the committee consider it to be unnecessary. Notice of the meeting will be published in Iris Oifigiúil and also sent by post to each of the creditors — subsection (2).
If at the meeting three-fifths in number and value of the creditors accept the offer of composition and the court approves it, the offer will be binding on all the creditors — subsection (3). The requirement of court approval is new and is designed to give the court full control over compositions. At present the court's control is limited to a power to refuse to annul the adjudication if the offer of composition is not reasonable and proper to be carried out under its control.
In deciding on an offer any creditor whose debt is less than £100 will not be entitled to vote at the meeting, that is, he will not be reckoned in number, or his debt in value, to arrive at the required majority of three-fifths in number and value of the creditors — subsection (4). At present a creditor whose debt is less than £20 is not reckoned in number but his debt is computed in value.
If for any reason the bankrupt has not already done so, he must file the statement of affairs required by section 19(c) at or before the meeting. Under the existing rule the bankrupt is obliged to file his statement of affairs ten days before the first of the two meetings.