Document ID: chunk:federal_register_of_legislation:F2022C01140:body:0:p49
Version: federal_register_of_legislation:F2022C01140
Segment Type: other
Provision Reference: 
Character Range: 134443–137681

reasonable if:
           (a) the creditors agree to bear the cost of complying with the direction; and
           (b) if required to do so by the external administrator—security for the cost of complying with the direction is given to the external administrator before the meeting is convened.

       75‑255  Notice requirements for unreasonable directions

        (1) This section is made for the purposes of section 75‑15 of the Insolvency Practice Schedule (Corporations) and applies if:
           (a) a direction to convene a meeting of the creditors is given to the external administrator under Division 75 of the Insolvency Practice Schedule (Corporations); and
           (b) under the Act or these Rules, it is not reasonable for the external administrator to comply with the direction.

        (2) The external administrator must:
           (a) notify the person or body giving the direction that it is not reasonable for the external administrator to comply with the direction, and of the reasons why it is not reasonable; and
           (b) make a written record in the books required to be kept under section 70‑10 of the Insolvency Practice Schedule (Corporations) of the fact that the direction was not complied with, and of the reasons.

       75‑265  Requirements relating to meetings to remove external administrator of a company

       Application of this section

        (1) This section applies if the creditors of a company under external administration propose, by resolution at a meeting, to:
           (a) remove the external administrator (the outgoing administrator) of the company; and
           (b) appoint another person (the incoming administrator) as the external administrator of the company;
       under section 90‑35 of the Insolvency Practice Schedule (Corporations).

       Information required before the meeting

        (2) The incoming administrator must prepare a written declaration:
           (a) stating whether any of the following:
              (i) the incoming administrator;
              (ii) if the incoming administrator's firm (if any) is a partnership—a partner in that partnership;
              (iii) if the incoming administrator's firm (if any) is a body corporate—that body corporate or an associate of that body corporate;
            has, or has had within the preceding 24 months, a relationship with:
              (iv) the company; or
              (v) an associate of the company; or
              (vi) a former external administrator of the company; or
              (vii) the creditor who nominated the incoming administrator for appointment as the incoming administrator; or
              (viii) a person who is entitled to enforce a security interest in the whole, or substantially the whole, of the company's property (including any PPSA retention of title property); and
           (b) if so, stating the incoming administrator's reasons for believing that none of those relationships result in the administrator having a conflict of interest or duty.

        (3) If the external administration is a voluntary administration, the incoming administrator must also prepare a written declaration:
           (a) stating whether the administrator is or