Div 75Meetings of creditors

Division 75—Meetings of creditors

75‑1  Simplified outline of this Division

The trustee of a regulated debtor’s estate may convene creditor meetings at any time and must convene them in particular circumstances, for example when directed to do so by certain creditors or by the Inspector‑General.

Requirements for convening and holding meetings (including notice, agenda, quorum, voting on proposals and costs) are set out in the Insolvency Practice Rules.

There is a mechanism for resolving a matter without holding a meeting.

75‑2  Division applies to the Official Trustee

  This Division applies to the Official Trustee in the same way as it applies to the trustee of a regulated debtor’s estate.

75‑5  Other obligations to convene meetings not affected

  Nothing in this Division limits the operation of any other provision of this Act, or any other law, imposing an obligation to convene a meeting in relation to a regulated debtor, or the administration of a regulated debtor’s estate.

75‑10  Trustee may convene meetings

  The trustee of a regulated debtor’s estate may convene a meeting of the creditors at any time.

75‑15  Trustee must convene meeting in certain circumstances

 (1) The trustee of a regulated debtor’s estate must convene a meeting of the creditors if:

 (a) where there is a committee of inspection—the committee of inspection directs the trustee to do so; or

 (b) the creditors direct the trustee to do so by resolution; or

 (c) at least 25% in value of the creditors direct the trustee to do so in writing; or

 (i) less than 25%, but more than 10%, in value of the creditors direct the trustee to do so in writing;

 (ii) security for the cost of holding the meeting is given to the trustee before the meeting is convened.

 (2) However, the trustee of a regulated debtor’s estate need not comply with the direction if the direction is not reasonable.

 (4) For the purposes of paragraphs (1)(c) and (d), the value of the creditors is to be worked out by reference to the value of the creditors’ claims against the regulated debtor’s estate that are known at the time the direction is given.

75‑20  Trustee must convene meeting if required by the Inspector‑General

 (1) The Inspector‑General may, in writing, direct the trustee of a regulated debtor’s estate to convene a meeting of the creditors.

 (2) The Inspector‑General may include in the direction requirements to be complied with by the trustee in notifying the creditors of the meeting and in conducting the meeting.

 (3) The trustee must comply with a direction given under subsection (1), and any requirements included in the direction under subsection (2).