Document ID: chunk:federal_register_of_legislation:C2007A00132:clause:1_574
Version: federal_register_of_legislation:C2007A00132
Segment Type: clause
Provision Reference: sch 1 cl 574
Character Range: 92930–95622

574  Eligible unsecured creditors must approve the making or variation of a pooling determination

Convening of meetings of creditors

 (1) Within 5 business days after the liquidator or liquidators of a group of 2 or more companies:
 (a) make a pooling determination in relation to the group; or
 (b) vary a pooling determination in force in relation to the group;
the liquidator or liquidators must convene separate meetings of the eligible unsecured creditors of each of the companies in the group.

Note: For eligible unsecured creditor, see section 579Q.

Notice of meeting

 (2) A liquidator of a company must convene a meeting of the eligible unsecured creditors of the company by giving written notice of the meeting to the company's eligible unsecured creditors at least 5 business days before the meeting.

Note: For electronic notification under this subsection, see section 600G.

 (3) The notice given to an eligible unsecured creditor under subsection (2) must be accompanied by:
 (a) a copy of the determination or variation; and
 (b) a written statement:
 (i) identifying each of the companies in the group; and
 (ii) setting out the opinion of the liquidator about each of the matters specified in subsection (4), and the reasons of the liquidator for those opinions; and
 (iii) if the liquidator considers that any eligible unsecured creditors are likely to be disadvantaged by the coming into force of the determination or variation—the reasons (if any) why the liquidator considers that those disadvantaged eligible unsecured creditors should vote for a resolution approving the making of the determination or variation; and
 (iv) setting out such other information known to the liquidator as will enable the eligible unsecured creditors to make an informed decision about whether to approve the making of the determination or variation.

Note: For electronic notification under this subsection, see section 600G.

 (4) For the purposes of subparagraph (3)(b)(ii), the matters are as follows:
 (a) whether it would be in the eligible unsecured creditors' interests generally for the determination or variation to come into force;
 (b) the extent to which particular eligible unsecured creditors are likely to be disadvantaged by the coming into force of the determination or variation;
 (c) the extent to which particular companies in the group are likely to be disadvantaged by the coming into force of the determination or variation;
 (d) the likely return to eligible unsecured creditors if the determination or variation were to come into force;
 (e) the likely return to eligible unsecured creditors if the determination or variation were not to come into force.