Bankruptcy Legislation Amendment Act 2002 (131 of 2002)

Schedule 1   Amendments

Part 1   Amendments

Bankruptcy Act 1966

54   After section 64ZB

Insert:

64ZBA Creditors' resolution without meeting

(1) The trustee may at any time put a proposal to the creditors by giving a notice under this section.

(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 (if it is passed); and

(c) be given to each creditor who would be entitled under section 64A to receive notice of a meeting of creditors; and

(d) invite the creditor to either:

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

(ii) object to the proposal being resolved without a meeting of creditors; and

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

(3) If, within the time specified in the notice:

(a) at least 1 creditor votes in writing; and

(b) no other creditor objects in writing to the proposal being resolved without a meeting of creditors;

then the following provisions have effect:

(c) if the proposal requires a special resolution and there is a Yes vote by a majority in number, and at least 75% in value, of those who voted within the required time - the proposal is taken to have been passed by a special resolution of creditors at a meeting;

(d) if the proposal does not require a special resolution and there is a Yes vote by a majority in value of those who voted within the required time - the proposal is taken to have been passed by a resolution of creditors at a meeting;

(e) in any other case - the proposal is taken not to have been passed.

(4) A certificate signed by the trustee stating any matter relating to a proposal under this section is prima facie evidence of the matter.