28 Feb 2012 Posted in Parliamentary speeches and responses
Mrs Lina Chiam, Non-Constituency Member
To ask the Minister for Law (a) if he will give a detailed account of the annulment of bankruptcy orders issued in December 2011 to the three former directors of the National Kidney Foundation; and (b) how the bankruptcy laws have been applied in the case.
- Sir, before I address Mrs Chiam’s question, I should declare that my Minister represented the National Kidney Foundation (or “NKF”) in its suit against, amongst others:
- Ms Matilda Chua, ex-member of the NKF board;
- Mr Richard Yong, ex-chairman of the NKF board; and
- The late Mr Loo Say San, ex-treasurer of the NKF.
- Following bankruptcy applications filed by the NKF, Mr Yong, Mr Loo and Ms Chua were adjudged bankrupts on 16 May 2007 after failing to pay liquidated damages and costs to the NKF.
- Sir, sections 95 and 95A of the Bankruptcy Act provide that the Official Assignee may annul a bankruptcy order if a composition or scheme is accepted through a special resolution, where a majority in the number of creditors, who together hold at least 75% of the total liabilities, accept the debt settlement proposal.
- In the case of Mr Yong, Mr Loo and Ms Chua, the Official Assignee had completed the administration of their bankruptcy estates and realised all their available assets for the benefit of the creditors. A debt settlement proposal was put up to the creditors for their consideration. This was accepted by creditors, in accordance with sections 95 and 95A of the Bankruptcy Act, as earlier mentioned. As such, the Official Assignee granted certificates of annulment to the three of them on 2 December 2011.
Last updated on 25 Nov 2012