Corporations Act 2001

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (CORPORATIONS)  

Note: See section 600K .

PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS  

Division 75 - Meetings  

CLAUSE 75-40   PROPOSALS TO CREDITORS OR CONTRIBUTORIES WITHOUT MEETING  

Proposal by notice to creditors

75-40(1)  
The external administrator of a company may at any time put a proposal to the creditors or contributories by giving notice, in writing, under this section. Content and service of notice

75-40(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 or contributories, as the case may be (if it is passed); and


(c) be given to each creditor or contributory, as the case may be, who would be entitled to receive notice of a meeting of creditors or contributories, as the case may be; and


(d) invite the creditor or contributory, as the case may be, to either:


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

(ii) object to the proposal being resolved without a meeting of creditors or contributories, as the case may be; and


(e) specify a reasonable time by which replies must be received by the external administrator (in order to be taken into account). Evidentiary certificate relating to proposals

75-40(3)  
A certificate signed by the external administrator of the company stating any matter relating to a proposal under this section is prima facie evidence of the matter. Insolvency Practice Rules relating to proposals

75-40(4)  
The Insolvency Practice Rules may provide for and in relation to proposals without meeting under this section.

75-40(5)  
Without limiting subsection (4), the Insolvency Practice Rules may provide for and in relation to:


(a) the circumstances in which a proposal is taken to be passed; and


(b) whether a proposal, if passed, is to be taken to have been passed as a resolution or a special resolution; and


(c) costs and security for those costs in relation to a proposal.


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