Document ID: chunk:federal_register_of_legislation:C2025C00185:schedule:2:p53
Version: federal_register_of_legislation:C2025C00185
Segment Type: schedule
Provision Reference: sch 2 (pt 53/73)
Character Range: 6445968–6448638

case may be, to an extent that is unreasonable having regard to the matters in subsection (2).

Unreasonable prejudice to interests of creditors—matters to be taken into account
 (2) For the purposes of subparagraph (1)(c)(ii), the matters are:
 (a) the benefits resulting to the related creditor, or to some or all of the related creditors, from the proposal if passed, or from the failure to pass the proposal, as the case may be; and
 (b) the nature of the relationship between the related creditor and the company, or of the respective relationships between the related creditors and the company; and
 (c) any other relevant matter.

Court may make orders
 (3) The Court may make one or more of the following:
 (a) an order that the proposal be considered and voted on at a meeting of the creditors convened and held as specified in the order;
 (b) an order directing that the related creditor is not, or such of the related creditors as the order specifies are not, entitled to vote on:
 (i) the proposal; or
 (ii) a resolution to amend or vary the proposal;
 (c) if the proposal was passed—an order setting aside the resolution passing the proposal;
 (d) such other orders as the Court thinks fit.

Definition—related creditor
 (4) In this section:
related creditor, for the purposes of a vote, in relation to a company, means a person who, when the vote was cast, was a related entity, and a creditor, of the company.

75‑42  Creditors' resolution passed because of casting vote—Court review

Application of this section
 (1) This section applies if:
 (a) a resolution is passed at a meeting of creditors of a company under external administration; and
 (b) the resolution is passed because the person presiding at the meeting exercises a casting vote.

Application to the Court
 (2) ASIC may apply to the Court for an order setting aside or varying the resolution.
 (3) A person (other than ASIC) may apply to the Court for an order setting aside or varying the resolution, but only if:
 (a) the person voted against the resolution in some capacity (even if the person voted for the resolution in another capacity); or
 (b) a person voted against the resolution on the first‑mentioned person's behalf.

Court may make orders
 (4) On application under subsection (2) or (3), the Court may:
 (a) by order set aside or vary the resolution; and
 (b) if it does so—make such further orders, and give such directions, as it thinks fit.
 (5) On and after the making of an order varying the resolution, the resolution has effect as varied by the order.

75‑43  Proposed creditors' resolution not passed because of casting vote—Court's powers

Application of this section