CHAPTER IV MEETING OF CREDITORS

Article 49-2 (Organization of Council of Creditors)

(1) The administrative committee (if the administrative committee is not established, it shall mean the court, and hereinafter the same shall apply in this Article) shall organize a council of creditors whose members shall be the leading creditors of a debtor who is a proprietor (hereinafter referred to as the "Council") after the application for the commencement of composition.

(2) The Council shall be composed of ten (10) and less members.

(3) The administrative committee may, if it deems to be necessary, cause a minority creditor to participate in the Council as a member of the Council. [This Article Newly Inserted by Act No. 5518, Feb. 24, 1998]

Article 49-3 (Function of Council)

(1) The Council may mediate the interests among creditors and present an opinion regarding the composition procedure to the court.

(2) The Council may, after the decision of the approval of composition is confirmed finally, evaluate the effective performance or non-performance of composition conditions, and request a debtor to present information necessary to determine the circumstances of performance of composition conditions. [This Article Newly Inserted by Act No. 5518, Feb. 24, 1998]

Article 49-4 (Furnishing Data on Council)

(1) The court shall furnish the Council with the copies of documents and the determination notes in connection with the application for the commencement of composition procedure, and other principal data on composition procedure prescribed by the regulations of the Supreme Court.

(2) The Council may request an inspection of data with regard to the book of a debtor and other composition procedure if it is necessary for the determination of the will regarding the composition procedure.

(3) In cases where a debtor is requested of inspection under the provision of Paragraph (2) above, the debtor shall comply therewith unless there exist justifiable reasons.

(4) The Council shall furnish information and data with regard to the composition procedure, if there is a request by creditors other than the members of the Council.

(5) The organization, function, authority, and other necessary matters of the Council shall be prescribed by the regulations of the Supreme Court. [This Article Newly Inserted by Act No. 5518, Feb. 24, 1998]

Article 50 (Summons on Day for Meeting of Creditors)

(1) On the day for meeting of creditors, the composition creditor who has reported, the applicant for composition and a person who has become a guarantor for composition or is under obligation with the debtor or has furnished security for composition creditor, shall be summoned.

(2) To the persons in the preceding paragraph, written instruments on which are stated the conditions of composition and the gist of opinion of the liquidation commissioner, shall be served, except the person to whom it has already been served pursuant to the provisions of Article 28 (2) and (3).

Article 51 (Voting Right of Interested Persons)

The administrator and the liquidation commissioner shall inspect whether or not the voting right is exercised in the meeting of creditors in relation to each reported claim and in what amount it shall be exercised.

Article 52 (Report of Administrator and Liquidation Commissioner)

(1) The administrator and the liquidation commissioner shall report the circumstances causing commencement of composition, the progress and the present state of debtor and his property and the result of investigation under the provisions of the preceding Article and express their opinions on the suitability of composition conditions in a meeting of creditors.

(2) Article 166 (2) through (4) of the Bankruptcy Act shall apply mutatis mutandis to the dissent of the person as provided in Article 50 (1), the administrator or the liquidation commissioner on a reported claim.

Article 53 (Provisions of Meeting of Creditors in Bankruptcy which Apply Mutatis Mutandis)

(1) Articles 162, 165, the proviso of Article 211, Articles 273, 274, 278, and 279 of the Bankruptcy Act shall apply mutatis mutandis to the meeting of creditors.

(2) Articles 276 and 277 of the Bankruptcy Act shall apply mutatis mutandis to a composition.

Article 53-2 (Exceptions to Small and Medium Enterprise)

With regard to small and medium enterprise pursuant to the provision of Article 2 (1) of the Basic Small and Medium Enterprise Act (except for the small and medium enterprise pursuant to the provision of Article 2 (3) of the same Act), the court shall appoint a preservative administrator, liquidation commissioner, or administrator among the members of the administrative committee if it deems to be necessary to run the composition procedure as soon as possible. [This Article Newly Inserted by Act No. 5518, Feb. 24, 1998]