(1) The administrator of a company under administration must convene a meeting
of the company's creditors within the convening period as fixed by
subsection (5) or extended under subsection (6).
- Note: For
body corporate representatives' powers at a meeting of the company's
creditors, see section 250D.
(2) The meeting must be held within 5 business days after the end of the
convening period.
(3) The administrator must convene the meeting by:
- (a)
- giving written notice
of the meeting to as many of the company's creditors as reasonably
practicable; and
- (b)
- causing notice of the meeting to be published:
- (i)
- in a national newspaper; or
- (ii)
- in each State or Territory in which the company has its registered office
or carries on business, in a daily newspaper that circulates generally in that
State or Territory;
at least 5 business days before the meeting.
(4) The notice given to a creditor under paragraph (3)(a) must be
accompanied by a copy of:
- (a)
- a report by the administrator about the
company's business, property, affairs and financial circumstances; and
- (b)
- a statement setting out the administrator's opinion about each of the
following matters:
- (i)
- whether it would be in the creditors' interests for the company to execute
a deed of company arrangement;
- (ii)
- whether it would be in the creditors' interests for the administration to
end;
- (iii)
- whether it would be in the creditors' interests for the company to be
wound up;
and his or her reasons for those opinions; and
- (c)
- if a deed of company arrangement is proposed—a statement setting out
details of the proposed deed.
(5) The convening period is:
- (a)
- if the administration begins on a day that
is in December, or is less than 28 days before Good Friday—the period of
28 days beginning on that day; or
- (b)
- otherwise—the period of 21 days beginning on the day when the
administration begins.
(6) The Court may extend the convening period on an application made within
the period referred to in paragraph (5)(a) or (b), as the case requires.
Commonwealth Numbered Acts