ABSTRACT
Meetings of creditors and of members must be held within 28 days of a moratorium taking effect if there is one and not less than 14 and not more than 28 days after the nominee files his or her report with the court in other cases. The meetings may be held on separate days, but not more than seven days apart.70 Those summoned to the meetings must be sent a copy of the proposal, a summary of the statement of affairs and the nominee’s comments on the proposal.71 Notice of the creditors’ meeting must be sent to all creditors of the company of whose claims and addresses the nominee is aware.72 The meetings will decide whether to approve the proposed arrangement with or without modification.73 The meetings may not approve any proposal or modification which affects the rights of a secured creditor to enforce a security or affects the priority of payment of preferential debts unless the creditor affected consents.74 Where the meetings disagree, the creditors’ meeting will prevail, but members will have the right to apply to court within 28 days of the later of the two meetings.75 It is an offence for an officer of a company to seek to obtain a moratorium or an extension to a moratorium or approval to a proposed voluntary arrangement by making a false representation or committing a fraudulent act.76
