• Section 8: Section 8: Proof of Debts

    • Article 149A - Proving a debt

      (1) A person claiming to be a creditor of a Company and wishing to recover his debt in whole or in part must (subject to any order of the QFC Court to the contrary) submit his claim in writing to the officeholder.
      (2) A creditor is referred to as "proving" for his debt and a document by which he seeks to establish his claim is his "proof".
      (3) A proof must:
      (A) be made out by, or under the direction of, the creditor and be authenticated by him or a person authorised on his behalf; and
      (B) state the following matters;
      (i) the creditor's name and address;
      (ii) the total amount of the creditor's claim as at the date on which the Company entered into administration or Liquidation as the case may be, less any payments made after that date in respect of the claim and any adjustment by way of set-off in accordance with Article 107;
      (C) whether or not the claim includes outstanding uncapitalised interest;
      (D) particulars of how and when the debt was incurred by the Company;
      (E) particulars of any Security Interest held, the date on which it was given and the value which the creditor puts on it;
      (F) details of any reservation of title in respect of any goods to which the debt refers; and
      (G) the name, address and authority of the person authenticating the proof (if other than the creditor himself).
      (4) There shall be specified in the proof details of any documents by reference to which the debt can be substantiated, but it is not essential that such document be attached to the proof or submitted with it.
      (5) The officeholder may call for any document or other evidence to be produced to him, where he thinks it necessary for the purpose of substantiating the whole or any part of the claim made in the proof.
      (6) Where an administration is immediately preceded by a winding up, or vice versa, a creditor providing in one is deemed to have proved in the other.

    • Article 149B - Cost of proving

      Unless the QFC Court provides otherwise:

      (1) a creditor bears the cost of proving his own debt, including the costs incurred in providing documents or evidence substantiating the claim made in the proof; and
      (2) costs incurred by the officeholder in estimating the quantum of a debt not bearing a certain value are payable as an expense of the liquidation.

    • Article 149C - Officeholder to allow inspections of proofs

      An officeholder must, so long as proofs lodged with him are in his hands, allow them to be inspected, at all reasonable times on a business day, by any of the following persons:

      (1) any creditor who has submitted his proof of debt;
      (2) any contributory of the Company; or
      (3) any person acting on behalf of either of the above.

    • Article 149D - Admission and rejection of proofs for dividend

      (1) A proof may be admitted for dividend either for the whole amount claimed by the creditor, or for part of that amount.
      (2) If the officeholder rejects a proof in whole or in part, he shall prepare a written statement of his reasons for doing so, and send it as soon as reasonably practicable to the creditor.

    • Article 149E - Appeal against decision on proof

      (1) If a creditor is dissatisfied with the officeholder's decision with respect to his proof (including any decision on the question of preference), he may apply to the QFC Court for the decision to be reversed or varied.
      (2) An application under (1) must be made within 21 days of his receiving the statement sent under Article 149D(2).
      (3) A contributory (in the case of a winding up), a member (in the case of an administration) or, in either case, a member may, if dissatisfied with the officeholder's decision admitting or rejecting the whole or any part of a proof, make such an application within 21 days of becoming aware of the officeholder's decision.
      (4) Where application is made to the QFC Court under this Article, the QFC Court shall fix a venue for the application to be heard, notice of which shall be sent by the applicant to the creditor who lodged the proof in question (if it is not himself) and the officeholder.
      (5) The officeholder shall, on receipt of the notice, file with the QFC Court the relevant proof, together (if appropriate) with a copy of the statement sent under Article 149D(2).
      (6) Where the application is made by a member or contributory, the QFC Court must not disallow the proof (in whole or in part) unless the Member or contributory shows that there is (or would be but for the amount claimed in the proof), or that it is likely that there will be (or would be but for the amount claimed in the proof), a surplus of assets to which the Company would be entitled.
      (7) After the application has been heard and determined, the proof shall, unless it has been wholly disallowed, be returned by the QFC Court to the officeholder.
      (8) The officeholder is not personally liable for costs incurred by any person in respect of the application under this Article unless the QFC Court otherwise orders.

    • Article 149F - Withdrawal or variation of proof

      A creditor's proof may at any time, by agreement between himself and the officeholder, be withdrawn or varied as to the amount claimed.

    • Article 149G - Expunging of proof by the QFC Court

      (1) The QFC Court may expunge a proof or reduce the amount claimed:
      (A) on the officeholder's application, where he thinks that the proof has been improperly admitted, or ought to be reduced; or
      (B) on the application of a creditor, if the officeholder declines to interfere in the matter.
      (2) Where application is made to the QFC Court under this Article, the QFC Court shall fix a venue for the application to be heard, notice of which shall be sent by the applicant:
      (A) in the case of an application by the officeholder, to the creditor who made the proof; and
      (B) in the case of an application by a creditor, to the officeholder and to the creditor who made the proof (if not himself).