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CORPORATIONS ACT 2001

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (CORPORATIONS)    View history reference

Note: See section 600K.

PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS  

Division 75 - Meetings  

CLAUSE 75-43  PROPOSED CREDITORS' RESOLUTION NOT PASSED BECAUSE OF CASTING VOTE - COURT'S POWERS  

 View history reference

Application of this section

75-43(1)  

This section applies if:


(a) a resolution is not passed at a meeting of creditors of a company under external administration; and


(b) the resolution is not passed because the person presiding at the meeting exercises a casting vote, or refuses or fails to exercise such a vote.

Application to the Court

75-43(2)  

ASIC may apply to the Court for an order under subsection (4).

75-43(3)  

A person (other than ASIC) may apply to the Court for an order under subsection (4), but only if:


(a) the person voted for the proposed resolution in some capacity (even if the person voted against the proposed resolution in another capacity); or


(b) a person voted for the proposed resolution on the first-mentioned person's behalf.

Court may make orders

75-43(4)  

On application under subsection (2) or (3), the Court may:


(a) order that the proposed resolution is taken to have been passed at the meeting; and


(b) if it does so - make such further orders, and give such directions, as it thinks fit.

75-43(5)  

If an order is made under paragraph (4)(a), the proposed resolution:


(a) is taken for all purposes (other than those of subsection (1)) to have been passed at the meeting; and


(b) is taken to have taken effect:


(i) if the order specifies a time when the proposed resolution is taken to have taken effect - at that time, even if it is earlier than the making of the order; or

(ii) otherwise - on the making of the order.

 



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