Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p22
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 22/110)
Character Range: 209050–211958

board has resolved to the effect that:

    (a)     in the opinion of the directors voting for the resolution, the company is insolvent, or is likely to become insolvent at some future time; and

  (b)     an administrator of the company should be appointed.

"(2) Subsection (1) does not apply to a company that is already being wound up.

Liquidator may appoint administrator

"436B.(1) A liquidator or provisional liquidator of a company may by writing appoint an administrator of the company if he or she thinks that the company is insolvent, or is likely to become insolvent at some future time.

"(2) With the leave of the Court, a liquidator or provisional liquidator of a company may appoint himself or herself under subsection (1).

  "(3) Subsection (2) has effect subject to Division 14.

Chargee may appoint administrator

"436C.(1) A person who is entitled to enforce a charge on the whole, or substantially the whole, of a company's property may by writing appoint an administrator of the company if the charge has become, and is still, enforceable.

"(2) Subsection (1) does not apply to a company that is already being wound up.

Company already under administration

"436D. An administrator cannot be appointed under section 436A, 436B or 436C if the company is already under administration.

Purpose and timing of first meeting of creditors

"436E.(1) The administrator of a company under administration must convene a meeting of the company's creditors in order to determine:

   (a)     whether to appoint a committee of creditors; and

   (b)     if so, who are to be the committee's members.

"(2) The meeting must be held within 5 business days after the administration begins.

  "(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 jurisdiction in which the company has its registered office or carries on business, in a daily newspaper that circulates generally in that jurisdiction;

at least 2 business days before the meeting.

  "(4) At the meeting, the company's creditors may also, by resolution:

   (a)     remove the administrator from office; and

   (b)     appoint someone else as administrator of the company.

Functions of committee of creditors

"436F.(1) The functions of a committee of creditors of a company under administration are:

    (a)     to consult with the administrator about matters relating to the administration; and

  (b)     to receive and consider reports by the administrator.

"(2) A committee cannot give directions to the administrator, except as provided in subsection (3).

"(3) As and when a committee reasonably requires, the administrator must report to the committee about matters relating to