Malaysia legislation
Section 46
Section 46
(a)
a copy of the proposal;
(b)
a copy of the report of the Independent Advisor;
(c)
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
(d)
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 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 Special Administrator and the Corporation approves the proposal under subsection 45(2), the proposal, including the proposal as it may subsequently be modified under section 48, shall be binding on the affected person, all members and creditors of the affected person and any other person
Pengurusan Danaharta Nasional Berhad 53
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.
(5A)
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 48, shall not release or 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; and
(b)
each such security and any such 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 48, or any compromise, arrangement, reconstruction or amalgamation in connection with the affected person.
(6)
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) nor the validity of the resolution passed at that meeting.
(7)
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 Special Administrator under subsection (2) or section 48.
(8)
A Special Administrator who contravenes subsection (1)
commits an offence and shall on conviction be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.
54 Laws of Malaysia
Implementation of proposal