Malaysia legislation
Section 185
Section 185
(a)
a copy of the proposal;
(b)
where the Corporation deems appropriate, a memorandum from the Corporation setting out such matters which in the view of the Corporation should be taken into account by the secured creditors in considering the proposal; and
(c)
a notice of meeting of secured creditors for the purpose set out in this section.
(2)
A meeting of secured creditors of the affected person shall be convened within fourteen days after the issuance of the notice of meeting of secured creditors under subsection (1).
(3)
The meeting of secured creditors of the affected person convened under subsection (2) shall decide whether to approve or reject the proposal.
(4)
If—
(a)
a majority in value of the secured creditors, present and voting, either in person or by proxy, at the meeting approves the proposal; or
(b)
there are no secured creditors of the affected person known to the conservator and the Corporation approves the proposal under subsection 184(4), the proposal, including the proposal as it may subsequently be modified under section 187, shall be binding on the affected person, all shareholders and creditors of the affected person or any other person affected by the proposal, whether or not the person had knowledge or notice of the proposal.
(5)
For the purpose of paragraph (4)(a), a resolution to approve the proposal with any modification shall be deemed to be a rejection of the proposal.
Malaysia Deposit Insurance Corporation 189
(6)
Notwithstanding any law—
(a)
the approval or the implementation of a proposal under subsection (4), including the proposal as it may subsequently be modified under section 187, shall not discharge any security provided by any person to secure any duty or liability owed by the affected person to any creditor of the affected person except in such manner and to the extent provided for in the proposal; and
(b)
except as provided for in the proposal each such security, duty or liability of the person providing the security shall remain valid and enforceable against that person notwithstanding the approval or implementation of the proposal, including the proposal as it may subsequently be modified under section 187, or any compromise, arrangement, reconstruction or amalgamation in connection with the affected person.
(7)
The failure to notify any secured creditor of the affected person of the meeting of the secured creditors shall not invalidate the meeting convened under subsection (2) or the resolution passed at that meeting.
(8)
For the avoidance of doubt, if the Corporation is a secured creditor of the affected person, the Corporation shall be entitled to attend and vote at a meeting of secured creditors of the affected person convened by the conservator under subsection (2) or section 187.
Implementation of proposal