Corporations Act 2001
Note: See section 600K .
PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS Division 75 - Meetings SECTION 75-40 PROPOSALS TO CREDITORS OR CONTRIBUTORIES WITHOUT MEETINGProposal 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.
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