THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.5 - VOLUNTARY WINDING UP

Division 4 - Voluntary winding up generally

SECTION 510   ARRANGEMENT: WHEN BINDING ON CREDITORS  

510(1)  [Requirement of resolution]  

An arrangement entered into between a company about to be, or in the course of being, wound up and its creditors is, subject to subsection (4):

(a)  binding on the company if sanctioned by a special resolution; and

(b)  binding on the creditors if sanctioned by a resolution of the creditors.

510(1A)  [Lodgment of special resolution]  

The company must lodge a copy of a special resolution referred to in paragraph (1)(a) with ASIC within 14 days after the resolution is passed.

510(2)  [Calculation of amount of debt]  

A creditor shall be accounted a creditor for value for such sum as upon an account fairly stated, after allowing the value of security or liens held by the creditor and the amount of any debt or set-off owing by the creditor to the company, appears to be the balance due to the creditor.

510(3)  [Dispute as to debt]  

A dispute about the value of any such security or lien or the amount of any such debt or set-off may be settled by the Court on the application of the company, the liquidator or the creditor.

510(4)  [Appeal to Court]  

A creditor or contributory may, within 3 weeks after the completion of the arrangement, appeal to the Court in respect of the arrangement, and the Court may confirm, set aside or modify the arrangement and make such further order as it thinks just.