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).  (4) A direction given under subsection (1) is not a legislative instrument. 75‑25  Trustee’s representative at meetings  (1) The trustee of a regulated debtor’s estate may, in writing, appoint a person to represent the trustee at a meeting.  (2) Subsection (1) does not apply to a meeting of a kind prescribed.  (3) If the trustee is not personally present at a meeting, then a reference in a provision of this Act to a trustee, in respect of matters occurring at or in connection with the meeting, is a reference to a person appointed to represent the trustee at the meeting. 75‑30  Inspector‑General may attend meetings  (1) The Inspector‑General is entitled to attend any meeting of creditors held under this Act.  (2) Subject to any provision of this Act (including any provision in relation to voting), the Inspector‑General is entitled to participate in any meeting of creditors held under this Act. 75‑35  Commonwealth may attend certain meetings etc.   If:  (a) a former employee of a regulated debtor has made a claim for financial assistance from the Commonwealth in relation to unpaid employment entitlements; or  (b) the Commonwealth considers that such a claim is likely to be made; the Commonwealth is entitled to nominate a representative to attend any meeting of creditors held in relation to the administration of the regulated debtor’s estate. 75‑40  Proposals to creditors without meeting Proposal by notice to creditors  (1) The trustee of a regulated debtor’s estate may at any time put a proposal to the creditors by giving notice, in writing, under this section. Content and service of notice  (2) 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 (if it is passed); and  (c) be given to each creditor who would be entitled to receive notice of a meeting of creditors; and  (d) invite the creditor to either:  (i) vote Yes or No on the proposal; or  (ii) object to the proposal being resolved without a meeting of creditors; and  (e) specify a reasonable time by which replies must be received by the trustee (in order to be taken into account). Evidentiary certificate relating to proposals  (3) A certificate signed by the trustee of the regulated debtor’s estate stating any matter relating to a proposal under this section is prima facie evidence of the matter. Insolvency Practice Rules relating to proposals  (4) The Insolvency Practice Rules may provide for and in relation to proposals without meeting under this section.  (5) 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. 75‑50  Rules relating to meetings  (1) The Insolvency Practice Rules may provide for and in relation to meetings of creditors.  (a) the circumstances in which meetings must or may be convened; and  (b) notice for convening meetings; and  (c) agenda; and  (d) information to be given to creditors; and  (e) who is to preside at meetings; and  (f) the number of creditors required to constitute a quorum; and  (g) proxies and attorneys; and  (h) motions; and  (i) voting (including casting votes); and  (j) the circumstances in which a resolution or a special resolution must or may be put to creditors in a meeting; and  (k) the circumstances in which a resolution or a special resolution put to creditors in a meeting is passed; and  (l) facilities, including electronic communication facilities, to be available at meetings; and  (m) minutes; and  (n) costs in relation to meetings and security for those costs.