Corporations Act 2001

CHAPTER 2L - DEBENTURES  

PART 2L.5 - MEETINGS OF DEBENTURE HOLDERS  

SECTION 283EA   BORROWER'S DUTY TO CALL MEETING  
Duty to call meeting

283EA(1)    
The borrower must call a meeting of debenture holders if:

(a)    debenture holders who together hold 10% or more of the nominal value of the issued debentures to which the trust relates direct the borrower to do so; and

(b)    the direction is given to the borrower in writing at its registered office; and

(c)    the purpose of the meeting is to:

(i) consider the financial statements that were laid before the last AGM of the borrower; or

(ii) give the trustee directions in relation to the exercise of any of its powers.

Note: The trustee usually must comply with any directions given to it by the debenture holders at the meeting (see paragraph 283DA(h) ).

Duty to give notification of meeting

283EA(2)    
If the borrower is required to call a meeting, it must give notice of the time and place of the meeting to:

(a)    the trustee; and

(b)    the borrower's auditor; and

(c)    each of the debenture holders whose names are entered on the register of debenture holders.

Notice to joint holders of a debenture must be given to the joint holder named first in the register of debenture holders.

283EA(3)    
The borrower may give the notice to a debenture holder:

(a)    personally; or

(b)    

in the manner mentioned in paragraph 110D(1)(a) , (b) , (c) or (d) ; or

(c) (Repealed)

(d)    by any other means that the trust deed or the terms of the debentures permit.

Note: A defect in the notice may not invalidate a meeting (see section 1322 ).

When notice by post or electronic means is given

283EA(4)    
A notice of meeting sent to a debenture holder is taken to be given:

(a)    3 days after it is posted, if it is posted; or

(b)    

on the business day after it is sent, if it is sent by electronic means;

unless the trust deed or the terms of the debentures provide otherwise.