CORPORATIONS ACT 2001
Note: See section
GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS
Proposal by notice to creditors
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
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
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
The Insolvency Practice Rules may provide for and in relation to proposals without meeting under this section.
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.