Dear registered liquidator On 29 March 2020, to help limit the spread of COVID-19, the National Cabinet further limited indoor and outdoor non-essential gatherings to two people. This limit imposes further restrictions on the holding of meetings of creditors in external administrations. The Corporations Act 2001 requires certain meetings of creditors to be convened; including:
In the current environment, ASIC supports the use of information technology to facilitate the holding of ‘virtual’ meetings. ASIC supports registered liquidators convening a meeting of creditors (or members of the committee of Inspection) via telephone or video conference or other technology so that physical attendance at a meeting is not required. Registered liquidators should ensure the notice of meeting clearly states that due to the threat of COVID-19, and consistent with government policy on gatherings, a virtual meeting will be held. All meeting notices should clearly state that creditors are expected to attend by electronic means, and no physical place of meeting is provided. Details of the meeting should be provided in the material sent to creditors and the registered liquidators should take all reasonable steps to ensure the electronic facilities are operable for the meeting. To ensure the registered liquidator has advance knowledge of those creditors who might be attending the meeting, registered liquidators should request the creditors to confirm attendance in writing no later than one business day prior to the meeting. The creditor should be requested to provide contact details so they may be contacted if they do not respond when the registered liquidator confirms proofs of debts and proxies at the start of the meeting. Voting at the meetings should be conducted by poll with a record maintained of how each creditor has voted which is included in the minutes of meeting. Material that is to be tabled at the meeting for discussion should be sent to creditors who indicate they will be attending prior to the meeting. If this material cannot be sent prior to the meeting, or there are technical difficulties with the conference facilities, the registered liquidator is expected to adjourn the meeting to a later date to permit creditors who wish to attend participate fully in the meeting. The person who presides at the meeting must canvas creditors attending via electronic means to ensure they have an opportunity to raise questions they might have. A list of attendees and the resolutions passed should be forwarded to attendees as soon as possible (and within two days) to each participant to confirm the names of attendees and the outcomes of matters resolved. If creditors attempt to physically attend already convened meetings, the registered liquidator should:
Yours faithfully
Thea Eszenyi
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