Document ID: chunk:federal_register_of_legislation:F2022C01140:body:0:p33
Version: federal_register_of_legislation:F2022C01140
Segment Type: other
Provision Reference: 
Character Range: 93138–95767

Subject to subsections (3), (4) and (5), each creditor is entitled to vote and has one vote.

        (3) A person is not entitled to vote as a creditor at a meeting of creditors unless:
           (a) his or her debt or claim has been admitted wholly or in part by the external administrator; or
           (b) he or she has lodged, with the person presiding at the meeting, or with the person named in the notice convening the meeting as the person who may receive particulars of the debt or claim:
              (i) those particulars; or
              (ii) if required—a formal proof of the debt or claim.

        (4) A creditor must not vote in respect of:
           (a) an unliquidated debt; or
           (b) a contingent debt; or
           (c) an unliquidated or a contingent claim; or
           (d) a debt the value of which is not established;
       unless a just estimate of its value has been made.

        (5) A creditor must not vote in respect of a debt or a claim on or secured by a bill of exchange, a promissory note or any other negotiable instrument or security held by the creditor unless he or she is willing to do the following:
           (a) treat the liability to him or her on the instrument or security of a person covered by subsection (6) as a security in his or her hands;
           (b) estimate its value;
           (c) for the purposes of voting (but not for the purposes of dividend), to deduct it from his or her debt or claim.

        (6) A person is covered by this subsection if:
           (a) the person's liability is a debt or a claim on, or secured by, a bill of exchange, a promissory note or any other negotiable instrument or security held by the creditor; and
           (b) the person is either liable to the company directly, or may be liable to the company on the default of another person with respect to the liability; and
           (c) the person is not an insolvent under administration or a person against whom a winding up order is in force.

       75‑86  Other persons entitled to vote—persons by whom money is advanced to a company

        (1) A person by whom money is advanced to a company as described in section 560 of the Act is entitled to one vote at a meeting of creditors.

            Note: Paragraph 560(c) of the Act provides that a person by whom money is advanced to a company in specified circumstances has the same rights as a creditor of the company in relation to matters set out in Chapter 5 of the Act. This includes voting at a meeting of creditors of the company.

        (2) Subsection (1) applies whether the person has advanced money