Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 64ZBA

             (1)  The trustee may at any time put a proposal to the creditors by giving a notice under this section.

             (2)  The notice must:

                     (a)  contain a single proposal; and

                     (b)  include a statement of the reasons for the proposal and the likely impact it will have on creditors (if it is passed); and

                     (c)  be given to each creditor who would be entitled under section 64A to receive notice of a meeting of creditors; and

                     (d)  invite the creditor to either:

                              (i)  vote Yes or No on the proposal; or

                             (ii)  object to the proposal being resolved without a meeting of creditors; and

                     (e)  specify a time by which replies must be received by the trustee (in order to be taken into account).

          (2A)  If the proposal relates to how the trustee is to be remunerated, the notice must also:

                     (a)  if the trustee proposes to charge on a time-cost basis:

                              (i)  if there is only one rate at which the remuneration is to be calculated--state that rate; or

                             (ii)  otherwise--state the respective rates at which the remuneration of the trustee and the other persons who will be assisting, or will be likely to assist, the trustee in the performance of his or her duties are to be calculated; and

                     (b)  if the trustee proposes to charge on the basis of a commission upon money received by the trustee--state the rate of that commission; and

                     (c)  state the periods at which the trustee proposes to withdraw funds from the bankrupt's estate in respect of the trustee's remuneration; and

                     (d)  include an estimate of the total amount of the trustee's remuneration and an explanation of the likely impact of that remuneration on the dividends (if any) to creditors.

             (3)  If, within the time specified in the notice:

                     (a)  at least 1 creditor votes in writing; and

                     (b)  no other creditor objects in writing to the proposal being resolved without a meeting of creditors;

then the following provisions have effect:

                     (c)  if the proposal requires a special resolution and there is a Yes vote by a majority in number, and at least 75% in value, of those who voted within the required time--the proposal is taken to have been passed by a special resolution of creditors at a meeting;

                     (d)  if the proposal does not require a special resolution and there is a Yes vote by a majority in value of those who voted within the required time--the proposal is taken to have been passed by a resolution of creditors at a meeting;

                     (e)  in any other case--the proposal is taken not to have been passed.

             (4)  A certificate signed by the trustee stating any matter relating to a proposal under this section is prima facie evidence of the matter.