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 75-15   EXTERNAL ADMINISTRATOR MUST CONVENE MEETING IN CERTAIN CIRCUMSTANCES  

75-15(1)  
The external administrator of a company must convene a meeting of the creditors if:


(a) where there is a committee of inspection - the committee of inspection directs the external administrator to do so; or


(b) the creditors direct the external administrator to do so by resolution; or


(c) at least 25% in value of the creditors direct the external administrator to do so in writing; or


(d) both of the following are satisfied:


(i) less than 25%, but more than 10%, in value of the creditors direct the external administrator to do so in writing;

(ii) security for the cost of holding the meeting is given to the external administrator before the meeting is convened; or


(e) all of the following are satisfied:


(i) the company is being wound up under a creditors ' voluntary winding up;

(ii) less than 25%, but more than 5%, in value of the creditors direct the external administrator to do so in writing;

(iii) none of the creditors who give the direction is a related entity in relation to the company;

(iv) the direction is given no more than 20 business days after the resolution for the voluntary winding up of the company is passed.

75-15(2)  
However, the external administrator need not comply with the direction if the direction is not reasonable.

75-15(3)  
The Insolvency Practice Rules may prescribe circumstances in which a direction is, or is not, reasonable.

75-15(4)  
For the purposes of paragraphs (1)(c), (d) and (e), the value of the creditors is to be worked out by reference to the value of the creditors ' claims against the company that are known at the time the direction is given.

75-15(5)  
This section does not apply if:


(a) the external administrator is a provisional liquidator of the company; or


(b) the external administrator is the administrator of the company and the company is under administration.


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