Skip to content

  • Home
  • COVID-19 Guide
  • Podcast library
  • Client results
  • Expertise
  • News & Insights
  • People
  • Our DNA
  • Inclusion and Diversity
  • Join us
  • Contact Us
Home / NEWS & INSIGHTS / Blog / COVID-19: Recommendations and considerations / Changes to convening and holding creditor’s meetings
COVID-19: Recommendations and considerations / Insight 8 May 2020

Changes to convening and holding creditor’s meetings

Corporations (Coronavirus Economic Response Determination) No. 1 2020


On 5 May 2020, Treasurer Josh Frydenberg announced changes to the Corporations Act 2001 (Cth) (Corporations Act) and related legislation that allows for companies to have entirely virtual meetings and to issue electronic notice of meetings.  The changes have been made to give companies, responsible entities, external administrators and other classes of people governed by the Corporations Act certainty about how they can meet their legal obligations whilst abiding by social distancing measures for the next six months.

The Corporations (Coronavirus Economic Response) Determination (No. 1) 2020 (Determination) modifies provisions of the Corporations Act, the Corporations Regulations 2001 (Cth), the Insolvency Practice Rules (Corporations) 2016 (Cth) and the Corporations (Passport) Rules 2018 (Cth) that deal with how meetings are held and how notice of meetings are given.  It also affects any clauses in the constitution of a company or registered scheme which deals with these things. 

The Determination makes the following changes, effective from 6 May 2020 to 5 November 2020.

Meetings

  • A creditor’s meeting may be held using ‘one or more technologies’ to allow individuals to attend a meeting without being physically present.
  • All individuals participating in a meeting are taken to be present if participating using such technologies.
  • A vote taken at the meeting must be taken on a poll, and not a show of hands.
  • Each individual at a meeting must be given an opportunity to speak and ask questions.
  • A proxy may be appointed for virtual meetings.

Notice of Meetings

  • A notice of a meeting may be given use ‘one or more technologies’ to communicate to individuals the contents of the notice, other material relating to the meeting, or providing a link to where the notice can be viewed or downloaded.
  • A notice which advises individuals that a virtual meeting will be held must communicate how they can participate in the meeting, including how they can vote and speak at the meeting.
  • For notices given before the commencement of the Determination, the person giving the notice must give a fresh notice of meeting at least 7 days before the meeting is held, which sets out how individuals can vote and speak at the electronic meeting.

This publication covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. It is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.

About the authors

LAURA SCLAVOS
Graduate

In other news

Tax administration lessons learnt from COVID-19 (and promptly forgotten)

24 February 2021Insight

Queensland’s new project trust regime to commence on 1 March 2021

15 February 2021BIF Act Amendment Series, Insight

McCullough Robertson strengthens its National Construction and Infrastructure team with key Partner hire in Brisbane

27 January 2021News

New Industrial Relations Laws – What it means for you

22 December 2020Insight

VIEW ALL NEWS & INSIGHTS

BRISBANE

Level 11, 66 Eagle Street
Brisbane QLD 4000
GPO Box 1855
Brisbane QLD 4001
Tel +61 7 3233 8888
Fax +61 7 3229 9949

 

GET IN TOUCH

    Contact form

    We handle your personal information in accordance with our privacy policy.

    sydney

    Level 32, MLC Centre
    19 Martin Place
    Sydney NSW 2000
    GPO Box 462
    Sydney NSW 2001

    Tel +61 2 8241 5600
    Fax +61 2 8241 5699

     

    GET IN TOUCH

      Contact form


      We handle your personal information in accordance with our privacy policy.

      melbourne

      Level 27, 101 Collins Street
      Melbourne VIC 3000
      GPO Box 2924
      Melbourne VIC 3001

      Tel +61 3 9067 3100
      Fax +61 3 9067 3199

       

      GET IN TOUCH

        Contact form

        We handle your personal information in accordance with our privacy policy.

        follow us

        CLIENT LOGIN

        newcastle

        Level 2, 16 Telford Street
        Newcastle NSW 2300
        PO Box 394
        Newcastle NSW 2300

        Tel +61 2 4914 6900
        Fax +61 2 4914 6999

         

        GET IN TOUCH

          Contact form


          We handle your personal information in accordance with our privacy policy.

          canberra

          Level 9, 2 Phillip Law Street
          Canberra ACT 2601

          Tel +61 2 6243 3699
          Fax +61 2 8241 5699

           

          GET IN TOUCH

            Contact form


            We handle your personal information in accordance with our privacy policy.

            © 2017 McCullough Robertson. Site map Disclaimer Privacy Policy Statement of Business Ethics Credit Reporting Policy

            X