Outcome of voting at creditors’ meeting determined by related entity—Court powers
415A Outcome of voting at creditors’ meeting determined by related entity—Court powers
Subsection (3) applies if, on the application of a creditor of a Part 5.1 body, the Court is satisfied of the following matters:
a proposed resolution has been voted on at a meeting of creditors, or of a class of creditors, of the body held under this Part;
that, if the vote or votes that a particular related creditor, or particular related creditors, of the body cast on the proposed resolution had been disregarded for the purposes of determining whether or not the proposed resolution was passed, the proposed resolution:
if it was in fact passed—would not have been passed; or
if in fact it was not passed—would have been passed;
or the question would have had to be decided on a casting vote;
that the passing of the proposed resolution, or the failure to pass it, as the case requires:
is contrary to the interests of the creditors as a whole or of that class of creditors as a whole, as the case may be; or
has prejudiced, or is reasonably likely to prejudice, the interests of the creditors who voted against the proposed resolution, or for it, as the case may be, to an extent that is unreasonable having regard to the matters in subsection (2).
The matters are:
the benefits resulting to the related creditor, or to some or all of the related creditors, from the resolution, or from the failure to pass the proposed resolution, as the case may be; and
the nature of the relationship between the related creditor and the body, or of the respective relationships between the related creditors and the body; and
any other relevant matter.
The Court may make one or more of the following:
if the proposed resolution was passed—an order setting aside the resolution;
an order that the proposed resolution be considered and voted on at a meeting of the creditors of the body, or of that class of creditors, as the case may be, convened and held as specified in the order;
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:
the proposed resolution; or
a resolution to amend or vary the proposed resolution;
such other orders as the Court thinks necessary.
In this section:
related creditor, in relation to a Part 5.1 body, in relation to a vote, means a person who, when the vote was cast, was a related entity, and a creditor, of the body.
This Act’s bill:Explanatory memorandumSecond reading speech
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