75‑175 Calling a meeting in relation to 75‑175 Calling a meeting in relation to compositions or arrangements

75‑175 Calling a meeting in relation to compositions or arrangements

(1) This section applies if a regulated debtor lodges a proposal with the trustee of the regulated debtor’s estate under subsection 73(1) of the Act. (2) The trustee must: (a) call a meeting of the creditors of the regulated debtor’s estate; and (b) send a copy of the following to the creditors at least 5 business days before the day of the meeting: (i) the proposal and a report on the proposal; (ii) if the meeting is the first meeting of creditors held during the administration of the estate—a copy of the regulated debtor’s statement of affairs, or a summary of that statement; (iii) if section 73B of the Act applies in relation to the composition or scheme of arrangement—a copy of the declaration referred to in that section; (iv) a form for the purposes of subsection (5). (2A) If the approved form for a statement of affairs indicates that particular information in the statement will not be made available to the public, then, for the purposes of subparagraph (2)(b)(ii), the trustee must not give that information to the creditors. (2B) Before calling the meeting, the trustee may require the regulated debtor to lodge with the trustee an amount that is sufficient to cover: (a) the estimated costs that will be incurred by the trustee in arranging and holding the meeting; and (b) the estimated remuneration that will be payable to the trustee in respect of the meeting. (2C) If the amount lodged by the regulated debtor for the purposes of subsection (2B) is more than the actual costs and remuneration, then the trustee must refund the excess to the regulated debtor. (2D) The report on the proposal referred to in subparagraph (2)(b)(i) must: (a) indicate whether the proposal would benefit the regulated debtor’s creditors generally; and (b) name each creditor who was identified as a related entity of the regulated debtor in the debtor’s statement of affairs. (3) Despite paragraph (2)(a), the trustee may refuse to call a meeting if the proposal does not make adequate provision for payment of accrued remuneration that: (a) is owing (at the time the proposal is lodged) in relation to the administration of the regulated debtor’s estate, but are not able to be taken out of the debtor’s estate; and (b) if the trustee is a registered trustee—has been determined in accordance with section 60‑10 or 60‑11 of the Insolvency Practice Schedule (Bankruptcy) before the proposal is considered. (4) The regulated debtor (or, in the case of a deceased regulated debtor, the regulated debtor’s legal representative) may, at a meeting of the creditors, amend the terms of his or her proposal, but not in a way that reduces any provision for payment to a trustee of remuneration referred to in subsection (3). (5) A creditor who has proved his or her debt may assent to or dissent from the proposal by written notice to that effect given to the trustee of the regulated debtor’s estate before the meeting. (6) If subsection (5) applies to a creditor, the creditor is taken to have been present at the meeting and to have voted according to his or her assent or dissent.