407. Consideration of proposals by creditors’ meeting

A meeting of creditors called under the provisions of section 406 shall decide whether to approve the administrator’s proposals.

The meeting may approve the proposals with modifications, if the administrator consents to the modifications.

The meeting shall be conducted in accordance with the procedure specified in the Seventh Schedule and within ten working days of such meeting the administrator shall give notice of the result to the Registrar.

Where the admininstrator’s proposals are approved, the administrator shall continue in office if the proposals so provide or shall cease to hold office in the circumstances set out in the proposals.

Where the administrator’s proposals are not approved, the administrator shall cease to hold office five working days after the date of the meeting.

Where the administrator fails to comply with the requirements of subsection (4) he shall be guilty of an offence and be liable on conviction to a fine not exceeding fifty thousand rupees.