Corporations Act 2001

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (CORPORATIONS)  

Note: See section 600K .

PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS  

Division 80 - Committees of inspection  

SECTION 80-27   EXTERNAL ADMINISTRATOR MUST CONVENE MEETING IN CERTAIN CIRCUMSTANCES  

80-27(1)    
The external administrator, or the external administrators, of the members of a pooled group must convene a meeting under section 80-26 if:

(a) where there is a committee of inspection for a member of the pooled group - the committee of inspection directs the external administrator, or external administrators, to do so; or

(b) the creditors of one of the members of the pooled group direct the external administrator, or external administrators, to do so, by resolution; or

(c) at least 25% in value of the creditors of one of the members of the pooled group, direct the external administrator, or external administrators, to do so in writing; or

(d) both of the following are satisfied:

(i) less than 25%, but more than 10%, in value of the creditors of one of the members of the pooled group direct the external administrator, or external administrators, to do so in writing;

(ii) security for the cost of holding the meeting is given to the external administrator, or external administrators, before the meeting is convened; or

(e) all of the following are satisfied:

(i) the members of the pooled group are each being wound up under a creditors ' voluntary winding up;

(ii) less than 25%, but more than 5%, in value of the creditors of one of the members of the pooled group direct the external administrator, or external administrators, to do so in writing;

(iii) none of the creditors who give the direction is a related entity in relation to that member of the pooled group;

(iv) the direction is given no more than 20 business days after the last resolution for the voluntary winding up of the members of the pooled group is passed.

80-27(2)    
However, the external administrator, or external administrators, need not comply with the direction if the direction is not reasonable.

80-27(3)    
The Insolvency Practice Rules may prescribe circumstances in which a direction is, or is not, reasonable.

80-27(4)    
For the purposes of paragraphs (1)(c), (d) and (e), the value of the creditors is to be worked out by reference to the value of the creditors ' claims (that are known at the time the direction is given) against the member of the pooled group.

80-27(5)    
This section does not apply if:

(a) one of the external administrators is a provisional liquidator of a member of the pooled group; or

(b) one of the external administrators is the administrator of a member of the pooled group and the member is under administration.