Corporations Act 2001

CHAPTER 10 - TRANSITIONAL PROVISIONS  

PART 10.25 - TRANSITIONAL PROVISIONS RELATING TO THE INSOLVENCY PRACTICE SCHEDULE (CORPORATIONS)  

Division 3 - Application of Part 3 of the Insolvency Practice Schedule (Corporations) and related consequential amendments  

Subdivision G - Committees of inspection  

SECTION 1611   VALIDITY OF APPOINTMENT UNDER SECTION 548 OF THE OLD ACT NOT AFFECTED BY LACK OF SEPARATE MEETING OF CONTRIBUTORIES  

1611(1)    
The appointment of a committee of inspection under section 548 of the old Act before the commencement day is not invalid merely because a separate meeting of contributories was not convened for the purposes of determining:

(a) whether a committee of inspection should be appointed; and

(b) where a committee of inspection is to be appointed:

(i) the numbers of members to represent the creditors and the contributories, respectively; and

(ii) the persons who are to be members of the committee representing creditors and contributories, respectively.

1611(2)    
However, if:

(a) a debt or claim has been paid in the winding up of a company before the commencement day; and

(b) the priority given to the debt or claim was determined under section 556 of the Corporations Act 2001 on the basis that a committee of inspection was not validly appointed because a separate meeting of contributories was not convened for the purposes mentioned in paragraphs (1)(a) and (b); and

(c) but for subsection (1), the committee of inspection would not have been validly appointed;

the priority of the payment is not affected by subsection (1).