Corporations Amendment (Insolvency) Act 2007 (132 of 2007)

Schedule 1   Improving outcomes for creditors

Part 4   Facilitating pooling in external administration

Corporations Act 2001

129   After section 548

Insert:

548A Convening of meeting for appointment of committee of inspection - pooled group

(1) If:

(a) either:

(i) a pooling determination is in force in relation to a group of 2 or more companies; or

(ii) a pooling order is in force in relation to a group of 2 or more companies; and

(b) each company in the group is being wound up;

the liquidator or liquidators must, if requested by a creditor of a company in the group, convene a meeting, on a consolidated basis, of the creditors of the companies in the group for the purposes of determining:

(c) whether a committee of inspection should be appointed for the group; and

(d) if a committee of inspection is to be appointed:

(i) the number of members to represent the creditors of the companies in the group; and

(ii) the persons who are to be members of the committee representing the creditors of the companies in the group.

(2) The regulations may make provision for or in relation to:

(a) the convening of, conduct of, and procedure and voting at, consolidated meetings of creditors; and

(b) the number of persons required to constitute a quorum at any such meeting; and

(c) the sending of notices of meetings to persons entitled to attend any such meeting; and

(d) the lodging of copies of notices of, and of resolutions passed at, any such meeting; and

(e) generally regulating the conduct of, and procedure at, any such meeting.

(3) A person is not eligible to be appointed as a member of a committee of inspection as a result of a determination under subsection (1) unless the person is an eligible unsecured creditor (within the meaning of Division 8) of a company in the group.

Note: For eligible unsecured creditor , see section 579Q.

(4) A committee of inspection for a group of 2 or more companies is taken to be a committee of inspection for each company in the group.

(5) If:

(a) a determination is made under subsection (1); and

(b) immediately before the determination was made, a committee of inspection was in existence for a company in the group;

the committee mentioned in paragraph (b) ceases to exist when the determination is made.