First meeting of creditors-public examination, Financial Accounting

First Meeting of creditors

The Official Receiver must convene this meeting within 60 days of the receiving order, unless the court extends the time, by giving notice to each creditor mentioned in the statement of affairs and by six days' notice in the Gazette.  He must send with the notice a summary of the statement of affairs, his own comments thereon, a form of proof, and details of any scheme proposed by the debtor. The debtor must be given three days' notice of the meeting.

The purpose of the meeting is to decide whether to accept a scheme of arrangement (if any) or to have the debtor adjudged bankrupt, and in the latter case to appoint a trustee and a committee of inspection.

Public examination

This is fixed by the court, on the application of the Official Receiver, as soon as is convenient after the time for submission of the debtor's statement of affairs Notice must be given to the debtor and the creditors and advertised in the Kenya Gazette and a local paper.

The debtor must attend, and must answer on oath all questions properly put to him about his affairs, even if the answers are incriminating.

If the debtor fails to attend or refuses to answer such questions, the examination may be adjourned sine die (indefinitely), and the debtor adjudged bankrupt forthwith.

Posted Date: 12/12/2012 6:19:50 AM | Location : United States

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