CORPORATIONS ACT 2001

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (CORPORATIONS)  

Note: See section 600K .

PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS  

Division 80 - Committees of inspection  

CLAUSE 80-20   APPOINTMENT OF COMMITTEE MEMBER BY LARGE CREDITOR  

80-20(1)  
A creditor representing at least 10% in value of the creditors, or a group of creditors who together represent at least 10% in value of the creditors, of a company may appoint a person as a member of a committee of inspection in relation to the external administration of the company.

80-20(2)  
If a creditor or a group of creditors appoints a person as a member of a committee of inspection under this section, the creditor or group of creditors may:


(a) remove the person as a member of the committee; and


(b) appoint another person to fill a vacancy in the office of that member of the committee.

80-20(3)  
A creditor, acting either alone or with others, is not entitled to appoint a person as a member of a committee of inspection under subsection (1) if:


(a) the creditor votes on a resolution to appoint or remove a member of the committee under section 80-15 ; or


(b) the creditor, acting either alone or with others, appoints a member of the committee under subsection 80-25(1) ; or


(c) the creditor, acting either alone or with others, has already appointed a member of the committee under subsection (1) of this section.


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