Convening and attending an insolvency creditors meeting
Creditors meetings drive key decisions in external administrations: approval of remuneration, replacement of the external administrator, acceptance of a DOCA, and committee of inspection resolutions. Procedural defects can invalidate resolutions.
This is an 8-step workflow for convening and attending a meeting of creditors under the Insolvency Practice Rules (Corporations) 2016, covering notice, proofs of debt, voting, and resolutions.
Before you start
- Confirmed purpose of the meeting and the resolutions proposed
- Up-to-date creditor list with postal and email addresses
- Draft Report to Creditors or s 439A report (where applicable)
- Decision as to in-person, virtual, or hybrid format
The workflow
Confirm the statutory trigger
Confirm the statutory basis for the meeting (e.g. first meeting s 436E, second meeting s 439A, directed by creditors s 75-15 IPS, or convened by the practitioner under IPR 75-10).
Prepare notice and accompanying documents
Prepare the notice of meeting, proxy and proof of debt forms, and the Report to Creditors. Ensure at least 10 business days notice unless a shorter period is lawful.
Serve notice on creditors and ASIC
Serve the notice by the required means (post or electronic where consented) on all known creditors and lodge the notice with ASIC via the published notices website.
Adjudicate proofs and proxies
Adjudicate proofs of debt for voting purposes under IPR 75-85 and proxies under IPR 75-35. Record any disputes on the contingent voting list.
Chair the meeting and record attendance
Chair the meeting, record attendance of creditors and proxies, and open voting on each resolution. Manage any challenge to the chair's casting vote.
Conduct polls and record results
Where a poll is demanded, conduct the poll by value and by number. A resolution passes on both counts unless the chair uses the casting vote in accordance with the rules.
Deal with remuneration and committee resolutions
Table the remuneration report, answer reasonable questions, and put the remuneration resolution. If a committee of inspection is proposed, conduct the election.
Minute and follow-up actions
Prepare and sign the minutes, lodge any required ASIC forms, and implement resolutions passed (including any replacement of the external administrator or DOCA execution).
What you will have at the end
A creditors meeting convened and conducted in accordance with the IPS and IPR with valid notices, adjudicated proofs, and properly recorded resolutions that will survive challenge.
Common issues
- Short notice given without a proper basis under the Rules
- Proofs of debt adjudicated without supporting documents
- Remuneration report inadequate in the level of detail
- Casting vote by the chair used without recorded reasons
- Minutes not lodged, delaying post-meeting implementation
Run this workflow on a real matter
Quillio drafts the notice, proxy, and proof of debt packs, builds the voting register, and prepares chair notes mapped to the Rules. See /practice-areas/commercial-lawyers or start a free trial.
This workflow is a general guide. Meetings in specific external administrations may engage additional requirements.
Try this workflow with Quillio.
Quillio can run this workflow on a real matter, with citations to current AU authority on every step. The free trial requires no credit card.
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