CORPORATIONS ACT 2001
Note: See section 600K.
|PART 3 - GENERAL RULES RELATING TO EXTERNAL ADMINISTRATIONS
|Division 90 - Review of the external administration of a company
|Subdivision D - Removal by creditors
CLAUSE 90-35 REMOVAL BY CREDITORS
Creditors may remove external administrator and appoint another
The creditors may:
(a) by resolution at a meeting, remove the external administrator of a company; and
(b) by resolution at the same or a subsequent meeting, appoint another person as the external administrator of the company.
Note: For the general rules relating to meetings, see Division 75.
However, the creditors may not do so unless at least 5 business days' notice of the meeting is given to all persons who are entitled to receive notice of creditors' meetings.
The removal of an external administrator does not take effect until another person is appointed as external administrator of the company.
Former administrator may apply to Court to be reappointed
A person (the former administrator) who has been removed as external administrator of the company by resolution of the creditors may apply to the Court to be reappointed as external administrator of the company.
However, if the former administrator makes such an application, the former administrator must:
(a) record all costs incurred by the former administrator and the company in relation to the application; and
(b) do so in a way that separates those costs from the costs incurred by the former administrator and the company in relation to other matters.
The Court may order that the former administrator be reappointed as external administrator of the company if the Court is satisfied that the removal of the former administrator was an improper use of the powers of one or more creditors.
The Court may make such other orders in relation to the application as it thinks fit including orders in relation to:
(a) the costs of the application; and
(b) the remuneration of the former administrator.