THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.3A - ADMINISTRATION OF A COMPANY'S AFFAIRS WITH A VIEW TO EXECUTING A DEED OF COMPANY ARRANGEMENT

Division 5 - Meeting of creditors decides company's future

SECTION 439A   ADMINISTRATOR TO CONVENE MEETING AND INFORM CREDITORS  

439A(1)  [Administrator to convene meeting]  

The administrator of a company under administration must convene a meeting of the company's creditors within the convening period as fixed by subsection (5) or extended under subsection (6).

Note:

For body corporate representatives' powers at a meeting of the company's creditors, see section 250D.

439A(2)  [When meeting to be held]  

The meeting must be held within 5 business days after the end of the convening period.

439A(3)  [How meeting convened]  

The administrator must convene the meeting by:

(a)  giving written notice of the meeting to as many of the company's creditors as reasonably practicable; and

(b)  causing notice of the meeting to be published:

(i) in a national newspaper; or

(ii) in each jurisdiction in which the company has its registered office or carries on business, in a daily newspaper that circulates generally in that jurisdiction;

at least 5 business days before the meeting.

439A(4)  [Documents to accompany notice]  

The notice given to a creditor under paragraph (3)(a) must be accompanied by a copy of:

(a)  a report by the administrator about the company's business, property, affairs and financial circumstances; and

(b)  a statement setting out the administrator's opinion about each of the following matters:

(i) whether it would be in the creditors' interests for the company to execute a deed of company arrangement;

(ii) whether it would be in the creditors' interests for the administration to end;

(iii) whether it would be in the creditors' interests for the company to be wound up;

and his or her reasons for those opinions; and

(c)  if a deed of company arrangement is proposed - a statement setting out details of the proposed deed.

439A(5)  [Length of convening period]  

The convening period is:

(a)  if the administration begins on a day that is in December, or is less than 28 days before Good Friday - the period of 28 days beginning on that day; or

(b)  otherwise - the period of 21 days beginning on the day when the administration begins.

439A(6)  [Extension of convening period]  

The Court may extend the convening period on an application made within the period referred to in paragraph (5)(a) or (b), as the case requires.