Corporations Act 2001
A deed of company arrangement must contain a provision to the effect that, for the purposes of the application by the administrator of the property of the company coming under his or her control under the deed, any eligible employee creditors will be entitled to a priority at least equal to what they would have been entitled if the property were applied in accordance with sections 556 , 560 and 561 .444DA(2) [ Exceptions]
(a) at a meeting of eligible employee creditors held before the meeting convened under section 439A , the eligible employee creditors pass a resolution agreeing to the non-inclusion of such a provision; or
(b) the Court makes an order under subsection (5) approving the non-inclusion of such a provision. 444DA(3) Meeting of eligible employee creditors.
The administrator of the company must convene a meeting under paragraph (2)(a) by giving written notice of the meeting to as many of the eligible employee creditors as reasonably practicable at least 5 business days before the meeting.444DA(4) [ Contents of statement]
(a) the administrator ' s opinion whether the non-inclusion of such a provision would be likely to result in the same or a better outcome for eligible employee creditors as a whole than would result from an immediate winding up of the company; and
(b) his or her reasons for that opinion; and
(c) such other information known to the administrator as will enable the eligible employee creditors to make an informed decision about the matter covered by paragraph (a). 444DA(5) Court approval.
The Court may approve the non-inclusion of such a provision if the Court is satisfied that the non-inclusion of the provision would be likely to result in the same or a better outcome for eligible employee creditors as a whole than would result from an immediate winding up of the company.444DA(6) [ Who may apply]
(a) the administrator, or proposed administrator, of the deed; or
(b) an eligible employee creditor; or
(c) any interested person. 444DA(7) [ When Court may make order]
The Court may make an order under subsection (5) before or after the meeting convened under section 439A .