Document ID: chunk:federal_register_of_legislation:F2022C00672:body:0:p48
Version: federal_register_of_legislation:F2022C00672
Segment Type: other
Provision Reference: 
Character Range: 119329–122094

the proposed trustee under subsection 73B(2) of the Act.
 (6) Subsection (7) applies if:
 (a) the proposal provides that a person (the proposed trustee) other than the trustee of the regulated debtor's estate is to become the trustee of the composition or scheme of arrangement; and
 (b) assuming that the proposed trustee had been required, immediately before the start of the meeting, to make a declaration stating whether the regulated debtor is a related entity of:
 (i) the proposed trustee; or
 (ii) a related entity of the proposed trustee;
that declaration would have differed in one or more material respects from the declaration made by the proposed trustee under subsection 73B(2) of the Act.
 (7) If this subsection applies, the proposed trustee must table at the meeting a written statement identifying those differences.

Composition or scheme of arrangement must be available for inspection if proposal accepted
 (8) If, at a meeting of the creditors, the proposal is accepted by special resolution by the creditors, the trustee must make the composition or scheme of arrangement available for inspection by the creditors.

Subdivision F—Other rules about meetings

75‑250  Directions to trustee to convene a meeting—when reasonable and not reasonable
 (1) This section is made for the purposes of section 75‑15 of the Insolvency Practice Schedule (Bankruptcy).

Unreasonable directions
 (2) A direction to the trustee of a regulated debtor's estate to convene a meeting of the creditors is not reasonable if the trustee, acting in good faith, is of the opinion that:
 (a) complying with the direction would substantially prejudice the interests of one or more creditors or a third party and that prejudice outweighs the benefits of complying with the direction; or
 (b) there is not sufficient available property to comply with the direction; or
 (c) a meeting of the creditors dealing with the same matters covered by the direction has already been held, or will be held within 15 business days after the direction is given; or
 (d) the direction for the meeting is vexatious.
 (3) Without limiting paragraph (2)(d), a direction may be taken to be vexatious if it is given within 20 business days after a similar direction was given.

Reasonable directions
 (4) A direction to the trustee of a regulated debtor's estate to convene a meeting of the creditors is reasonable if subsection (2) does not apply to the direction.
 (5) Despite paragraph (2)(b) or (c), a direction to the trustee of a regulated debtor's estate to convene a meeting is also reasonable if:
 (a) the creditors agree to bear the cost of complying with the direction; and
 (b) if required to do so by the trustee—security for the cost of complying with the direction is given to