made the debtor may submit a proposal for
the payment of a composition, or for the liquidation of his affairs, by a
trustee or otherwise, without adjudication. The proposal must be lodged
with the official receiver in sufficient time to allow notice, together
with a report by that officer, to be sent to the creditors before the
meeting is held at which it is to be considered. If the proposal is
entertained at the meeting by a majority in number and three-fourths in
value of all the creditors who have proved their debts, and if it is
thereafter approved by the court, it becomes binding upon all creditors who
would be bound by an order of discharge had the debtor been adjudicated
bankrupt. A similar proposal may be made after adjudication, and if
entertained by the creditors and approved by the court, the adjudication
may be annulled. The debtor's release will be subject to the terms of the
scheme, but his future acquired property will not pass to the creditors
unless there is an express stipulation to that effect. If default is made
in carrying out the scheme, or if it is found that it cannot proceed
without injustice or undue delay, the court may at any time adjudicate the
debtor bankrupt, in which case the scheme will fall to the ground, except
in respect of past transactions under it. The approval of a composition or
scheme does not release the debtor from his liabilities under the criminal
law, nor from the necessity of undergoing a public examination which must,
in fact, be held and concluded before the approval of the court is applied
for. Also before such approval is given a report must be filed by the
official receiver upon its terms and on the conduct of the debtor, and the
court must be satisfied after hearing that officer and any creditor, that
the proposal is reasonable and calculated to benefit the creditors, and
that no criminal offences connected with the bankruptcy have been committed
by the debtor. Further, if any fact is proved which would have prevented
the debtor from obtaining an absolute or unconditional order of discharge
had he been adjudged bankrupt, the composition or scheme cannot be approved
unless it provides reasonable security for the payment of not less than
seven shillings and sixpence in the pound on all the unsecured debts. Where
a trustee is appointed to carry out the composition or scheme, all the
provisions of the act with reference to the remuneration of the trustee,
the custody of fun