Commonwealth Consolidated Acts

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Effect of creditors' resolution

             (1)  This section applies where, at a meeting convened under section 439A, a company's creditors resolve that the company execute a deed of company arrangement.

             (2)  The administrator of the company is to be the administrator of the deed, unless the creditors, by resolution passed at the meeting, appoint someone else to be administrator of the deed.

             (3)  The administrator of the company must prepare an instrument setting out the terms of the deed.

             (4)  The instrument must also specify the following:

                     (a)  the administrator of the deed;

                     (b)  the property of the company (whether or not already owned by the company when it executes the deed) that is to be available to pay creditors' claims;

                     (c)  the nature and duration of any moratorium period for which the deed provides;

                     (d)  to what extent the company is to be released from its debts;

                     (e)  the conditions (if any) for the deed to come into operation;

                      (f)  the conditions (if any) for the deed to continue in operation;

                     (g)  the circumstances in which the deed terminates;

                     (h)  the order in which proceeds of realising the property referred to in paragraph (b) are to be distributed among creditors bound by the deed;

                      (i)  the day (not later than the day when the administration began) on or before which claims must have arisen if they are to be admissible under the deed.

             (5)  The instrument is taken to include the prescribed provisions, except so far as it provides otherwise.

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