A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

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 80 - Committees of inspection  

CLAUSE 80-27  EXTERNAL ADMINISTRATOR MUST CONVENE MEETING IN CERTAIN CIRCUMSTANCES  

 View history reference

80-27(1)  

The external administrator, or the external administrators, of the members of a pooled group must convene a meeting under section 80-26 if:


(a) where there is a committee of inspection for a member of the pooled group - the committee of inspection directs the external administrator, or external administrators, to do so; or


(b) the creditors of one of the members of the pooled group direct the external administrator, or external administrators, to do so, by resolution; or


(c) at least 25% in value of the creditors of one of the members of the pooled group, direct the external administrator, or external administrators, 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 of one of the members of the pooled group direct the external administrator, or external administrators, to do so in writing;

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


(e) all of the following are satisfied:


(i) the members of the pooled group are each being wound up under a creditors' voluntary winding up;

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

(iii) none of the creditors who give the direction is a related entity in relation to that member of the pooled group;

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

80-27(2)  

However, the external administrator, or external administrators, need not comply with the direction if the direction is not reasonable.

80-27(3)  

The Insolvency Practice Rules may prescribe circumstances in which a direction is, or is not, reasonable.

80-27(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 (that are known at the time the direction is given) against the member of the pooled group.

80-27(5)  

This section does not apply if:


(a) one of the external administrators is a provisional liquidator of a member of the pooled group; or


(b) one of the external administrators is the administrator of a member of the pooled group and the member is under administration.

 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page