Proof in special the debtor was at the date of the receiving order liable in respect of distinct contracts as a member of two or more dis tinct firms, or as a sole contractor, and also as a member of a firm, proof may be made, in respect of such contracts, against the properties respectively liable on the contracts. And this is so, although the firms are in whole or in part composed of the same individuals ; or the sole contractor is also one of the joint contractors. In the case of periodical payments, such as rent, or other payments falling due at stated periods, and when the receiving order is made at any other time than one ()Mose periods, the creditor may prove for a proportionate part up to the date of the order, as if the rent or payment grew due from day to day. On any debt pivaLle at a certain time, or otherwise, whereon interest is not reserved, or agreed for, and which is overdue at the date of the receiving order, the creditor may prove for interest at 4 per cent. from the time the debt was payable: to the date of the order. A creditor may prove for a debt not payable when the debtor committed an act of bankruptcy, as if it were payable forthwith; dividends therefor being received equally with the other credi tors, except that the debt will be subject to the deduction of a rebate of interest of 4 per cent. from the date of the declaration of the dividend to the time when the debt in the ordinary course would have become payable.
Admission or rejection. of trustee is required to examine every proof and the grounds of the debt ; and in writing admit or reject it, in whole or in part, or require further evidence in support of it. If he rejects a proof, he must state in writing to the creditor the grounds of the rejection. Where the trustee considers that a proof has been improperly admitted, the Court may, after notice to the creditor who made the prod, expunge the proof orjltduce its amount. If a creditor is dissatisfied with any decision of the/trustee in respect of a proof, he may apply to the Court to reverse or vary it. Generally, in all matters relating to proof of debts, the official receiver has all the rights and powers of a trustee until the latter has been appointed. A " harsh and unconscionable transaction," within the Moneylenders Act, may be re-opened.
First and other meetings of creditors.—As soon as possible after the making of a receiving order against a debtor, there must be held a general meeting of his creditors, known as the first meeting of creditors. This meet ing is held for the purpose of considering any proposal for a composition which the debtor may put forward ; or any scheme of arrangement that may be suggested ; or whether the debtor shall be adjudged bankrupt ; and as to the mode of dealing with the debtor's property.
The first meeting should be summoned by the official receiver for a day not later than fourteen days after the date of the receiving order ; and not less than seven days' notice of the time and place thereof must be advertised in the London Gazette. Notice must also be sent to the creditors, together with a summery of the debtor's statement of affairs, including the causes of his failure, and any observations thereon which the official receiver may think fit to make ; but the proceedings at the first meeting will not be invalidated because any such notice or summary may not have been sent or received before the meeting. The chairman of the first meeting will be the official receiver, or
some person nominated by him ; but at subsequent meetings the chairman will be appointed by resolution of the meeting. No person is entitled to vote as a creditor at the first or any other meeting of creditors until he has duly proved a debt provable in bankruptcy to be due to him from the debtor, and the proof has been duly lodged before the time appointed for the meeting; nor can a creditor vote at any such meeting in respect of any unliquidated or contingent debt, or any debt the value of which is not ascertained.
Secured creditors.—For the purpose of voting, a secured creditor must, unless he surrenders his security, have stated in his proof the particulars of his security, the date when it was given, and the value at which he assesses it ; he then being entitled to vote only in respect of any balance remaining due to him, after deducting the value of his security. If he should vote in respect of his whole debt he will be deemed to have surrendered his security, unless he can satisfy the Court that his omission to value arose through inadvertence. This power of voting is a limited one in respect of debts on, or secured by, current bills of exchange or promissory notes held by him. Thus, he can only vote in such cases if he is willing to treat the liability to him thereon of every person who is liable thereon antecedently to the debtor, and against whom a receiving order has not been made, as a security in his hands ; being consequently willing to estimate the value thereof, and for the purposes of voting, but not for the purposes of dividend, to deduct it from his proof.
The trustee, or the official receiver, may require the creditor to give up a security for the benefit of the creditors generally on payment of the value estimated, with an addition thereto of a bonus of 20 per cent. ; but such a requisition must be made within twenty-eight days after the proof estimat ing the value of such a security has been made use of in voting at any meeting.
Partnerships.—If a receiving order is made against one partner of a firm, any creditor to whom that partner is justly indebted the other partners of the firm, or any of them, may prove his debt for the purpose of voting at any meeting of the creditors, and will be entitled to vote.
Rejection of proofs.—The chairman of a meeting has power to admit or reject a proof for the purpose of voting, but his decision is subject to reversal by the Court. If he is in doubt whether the proof of a creditor should be admitted or rejected, he is required to mark the proof as objected to, but must allow the creditor to vote, subject to the vote being declared invalid in the event of the objection being sustained.
Proxies.—A creditor may vote either in person or by proxy. He may give a general proxy, or voting-letter, to his manager or clerk, or any other person in his regular employment ; but in such case the instrument of proxy shall state the relation in which the person to act thereunder stands the creditor. A minor may not hold a proxy. The official receiver •may also receive a general proxy. The following is the usual form of proxy :—