Corporations Act 2001

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (CORPORATIONS)  

Note: See section 600K .

PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS  

Division 75 - Meetings  

SECTION 75-40   PROPOSALS TO CREDITORS OR CONTRIBUTORIES WITHOUT MEETING  

Proposal by notice to creditors

75-40(1)    
The external administrator of a company may at any time put a proposal to the creditors or contributories by giving notice, in writing, under this section.

Content and service of notice

75-40(2)    
The notice must:

(a) contain a single proposal; and

(b) include a statement of the reasons for the proposal and the likely impact it will have on creditors or contributories, as the case may be (if it is passed); and

(c) be given to each creditor or contributory, as the case may be, who would be entitled to receive notice of a meeting of creditors or contributories, as the case may be; and

(d) invite the creditor or contributory, as the case may be, to either:

(i) vote Yes or No on the proposal; or

(ii) object to the proposal being resolved without a meeting of creditors or contributories, as the case may be; and

(e) specify a reasonable time by which replies must be received by the external administrator (in order to be taken into account).

Evidentiary certificate relating to proposals

75-40(3)    
A certificate signed by the external administrator of the company stating any matter relating to a proposal under this section is prima facie evidence of the matter.

Insolvency Practice Rules relating to proposals

75-40(4)    
The Insolvency Practice Rules may provide for and in relation to proposals without meeting under this section.

75-40(5)    
Without limiting subsection (4), the Insolvency Practice Rules may provide for and in relation to:

(a) the circumstances in which a proposal is taken to be passed; and

(b) whether a proposal, if passed, is to be taken to have been passed as a resolution or a special resolution; and

(c) costs and security for those costs in relation to a proposal.