CORPORATIONS ACT 2001
Note: See section 600K.
|PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS
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.
However, the external administrator need not comply with the direction if the direction is not reasonable.
The Insolvency Practice Rules may prescribe circumstances in which a direction is, or is not, reasonable.
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.
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.