Bankruptcy Act

On the date of a creditors' meeting, a bankruptcy trustee, the bankrupt, and holders of filed bankruptcy claims must be summoned; provided, however, that when the order stated in Article 31, paragraph (5) is issued, holders of filed bankruptcy claims are not required to be summoned.

Notwithstanding the provisions of the main clause of the preceding paragraph, it is allowed not to summon holders of filed bankruptcy claims that may not exercise their voting rights. In the case of a meeting for reporting the status of property, the same applies to persons that are given a notice pursuant to the provisions of Article 32, paragraph (3).

The court must give a public notice and give a notice of the date of a meeting for reporting the status of property pursuant to the provisions of Article 32, paragraph (1), item (iii) and paragraph (3), and must also give a public notice of the date of each creditors' meeting (excluding a meeting for reporting the status of property; the same applies below in this paragraph) and the subject matter of the meeting, and give a notice of the date of each creditors' meeting to the labor union, etc.

If it is rendered on the date of a creditors' meeting that the meeting is to be postponed or continued, the provisions of the main clause of paragraph (1) and the preceding paragraph do not apply.

If the court finds it to be appropriate, pursuant to the provisions of the Rules of the Supreme Court, the court may conduct proceedings on a date of a creditors' meeting using a means that enables the court, the bankrupt, a bankruptcy trustee, holders of filed bankruptcy claims, and foreign trustees (meaning foreign trustees prescribed in Article 245, paragraph (1); the same applies in the following paragraph) to communicate one another through audio and visual transmissions while gaining an awareness of one another' situation.

The bankrupt, a bankruptcy trustee, holders of a filed bankruptcy claim, and foreign trustees who have participated in the proceedings without appearing on a date referred to in the preceding paragraph are deemed to have appeared on that date.

Creditors' meetings are directed by the court.

In order to adopt a matter that requires a resolution at a creditors' meeting, consent is required from persons whose voting rights account for more than half of the total amount of voting rights held by bankruptcy creditors that may exercise voting rights (referred to below as "voting right holders" in this Subsection) and attended a creditors' meeting on the date set or voted by document, etc. as prescribed in paragraph (2), item (ii) of the following Article.

The court issues an order that the matter is to be referred to a resolution at a creditors' meeting when a person stated in each item of Article 135, paragraph (1) has filed a petition stated in the main clause of Article 135, paragraph (1) for the purpose of referring a matter that requires a resolution at a creditors' meeting to a resolution.

The court must, in the order to refer a matter to a resolution stated in the preceding paragraph, determine any of the following means as the means for voting right holders to exercise their voting rights:

means of exercising a voting right on the date of a creditors' meeting;

means of exercising a voting right by voting by document, etc. within a period specified by the court (meaning voting by document or any other means specified by the Rules of the Supreme Court); or

means of exercising a voting right by either of the means stated in the preceding two items voting right holders select. In this case, the last day of the period referred to in the preceding item must precede the date of a creditors' meeting referred to in item (i).

When the court has determined the means stated in item (ii) or (iii) of the preceding paragraph as that for exercising a voting right, it must give a public notice to that effect, and give a notice to voting right holders that voting by document, etc. prescribed in item (ii) of that paragraph is allowed only within a period specified by the court; provided, however, that the notice is not required to be given if an order referred to in Article 31, paragraph (5) is issued.

When the court designates the means stated in paragraph (2), item (i) or (iii) of the preceding Article as that for exercising a voting right, voting right holders may exercise their voting rights in accordance with the amount of money specified in each of the following items in accordance with the category stated in the respective items:

a holder of a filed bankruptcy claim that holds a bankruptcy claim, the amount of which is finalized pursuant to the provisions of Subsection 4 of the preceding Section (excluding a holder of a right of separate satisfaction, holder of a quasi-right of separate satisfaction, or person that holds a bankruptcy claim that is a claim subject to a condition precedent, or a claim which may arise in the future (referred to as a "holder of a right of separate satisfaction, etc." in the following paragraph and paragraph (1), item (i) of the following Article)):the amount of the bankruptcy claim finalized;

a holder of a filed bankruptcy claim that holds a voting right without objection referred to in the main clause of the following paragraph:the amount filed (in the case of a holder of a right of separate satisfaction or holder of a quasi-right of separate satisfaction, the amount stated in Article 111, paragraph (2), item (ii) (including as applied mutatis mutandis pursuant to Article 111, paragraph (3) or Article 114)); or

a holder of the filed bankruptcy claim with a voting right subject to objection referred to in the main clause of the following paragraph:the amount determined by the court; provided, however, that a holder of filed bankruptcy claim may not exercise their voting right if the court has decided not to allow them to exercise the voting right.

A bankruptcy trustee or holder of a filed bankruptcy claim may make an objection on the date of a creditors' meeting against a voting right of a holder of a filed bankruptcy claim under the provisions of the preceding paragraph; provided, however, that this does not apply to a voting right held by a holder of a filed bankruptcy claim (excluding a holder of a right of separate satisfaction, etc.) who holds a bankruptcy claim the amount of which is finalized pursuant to the provisions of Subsection 4 of the preceding Section.

The court may change the decision made under the provisions of paragraph (1), item (iii) at any time upon the petition of an interested person or by its own authority.

When the court determines the means stated in Article 139, paragraph (2), item (ii) as the means for exercising a voting right, a voting right holder may exercise their voting right in accordance with the amount specified in each of the following items in accordance with the category stated in the respective items:

a holder of a filed bankruptcy claim that holds a bankruptcy claim the amount of which is finalized pursuant to the provisions of Subsection 4 of the preceding Section (excluding a holder of a right of separate satisfaction, etc.):the confirmed amount of the bankruptcy claim; or

a holder of a filed bankruptcy claim (excluding the one stated in the preceding item):the amount specified by the court; provided, however, that a holder of a filed bankruptcy claim may not exercise their voting right if the court has determined not to allow them to exercise the voting right.

The court may change the order under item (ii) of the preceding paragraph at any time upon the petition of an interested person or by its own authority.

A bankruptcy creditor does not have the right to vote with regard to a subordinate bankruptcy claim or consensually-subordinated bankruptcy claim.

A bankruptcy creditor that has received payment pursuant to the provisions of Article 101, paragraph (1) and a bankruptcy creditor that has received payment prescribed in Article 109 may not exercise the right to vote with regard to the amount of the claim paid.

Voting right holders may exercise their voting rights by proxy.

When there is a committee consisting of bankruptcy creditors, upon the petition of an interested person, the court may approve the participation of the committee in bankruptcy proceedings as provided for by this Act; provided, however, that this applies only when all of the conditions referred to in the following items are met:

the number of committee members is not less than three and not more than the number specified by the Rules of the Supreme Court;

it is found that the majority of bankruptcy creditors consent to the committee's participation in bankruptcy proceedings; and

it is found that the committee properly represents the interest of bankruptcy creditors as a whole.

When the court finds it necessary, it may request the approved committee pursuant to the provisions of the preceding paragraph (referred to below as the "creditors' committee") to state its opinion in bankruptcy proceedings.

The creditors' committee may state its opinion to the court or a bankruptcy trustee in bankruptcy proceedings.

When it is found that the creditors' committee has carried out activities that contribute to ensuring smooth progress of bankruptcy proceedings, upon the petition of a bankruptcy creditor that has incurred necessary expenses for the activities, the court may permit reimbursement of the amount of expenses which it finds reasonable to the bankruptcy creditor from the bankruptcy estate. In this case, a claim for the expenses is to be a claim on the estate.

Upon the petition of an interested person or by its own authority, the court may rescind the approval given pursuant to the provisions of paragraph (1) at any time.

When approval is given pursuant to the provisions of paragraph (1) of the preceding Article, the court clerk must notify a bankruptcy trustee to that effect without delay.

Upon receiving the notice under the provisions of the preceding paragraph, a bankruptcy trustee must hear opinions of the creditors' committee without delay with regard to the particulars concerning the administration and disposal of property that belong to the bankruptcy estate.

When a bankruptcy trustee has submitted a written report, etc. (meaning written reports, inventories of assets, or balance sheets; the same applies below in this Article) to the court pursuant to the provisions of Article 153, paragraph (2) or Article 157, the bankruptcy trustee must also submit the written report, etc. to the creditors' committee without delay.

When it is necessary for the interest of bankruptcy creditors as a whole, the creditors' committee may request the court to order that a bankruptcy trustee submit a report pursuant to the provisions of Article 157, paragraph (2) with regard to the necessary particulars concerning the administration and disposal of property that belongs to the bankruptcy estate.

The court that has received a request pursuant to the provisions of the preceding paragraph must order that a bankruptcy trustee submit a report under the provisions of Article 157, paragraph (2) when it finds the request appropriate.