Enter to open, tab to navigate, enter to select
Convening period
Practical Law ANZ Glossary w-019-6728 (Approx. 5 pages)
Glossary
Convening period
The period within which an administrator must call a meeting of the company's creditors to decide the company's future. That is, to decide whether the company should:
- Execute a deed of company arrangement (DOCA).
- Be returned to the control of the directors.
- Be placed into liquidation.
The convening period is defined by section 439A(5) of the CA 2001, being:
- If the day after the administration begins is in December, or is less than 25 business days before Good Friday, the period of 25 business days beginning on:
- that day; or
- if that day is not a business day, the next business day.
- Otherwise, the period of 20 business days beginning on:
- the day after the administration begins; or
- if that day is not a business day, the next business day.
The convening period for most voluntary administrations falls into the second category, being 20 business days beginning on the day after the voluntary administration began.
The creditors' meeting is referred to as the second meeting of creditors (the first creditors' meeting is held to give creditors an opportunity to replace the administrator and decide whether to appoint a committee of inspection).
Prior to the second meeting of creditors, the administrator must prepare and provide a report to creditors setting out:
- The administrator's recommendation (with reasons) as to whether it would be in the interests of the company's creditors for the company to be placed into liquidation, enter a DOCA (if any is proposed) or be returned to the control of the directors.
- Such other information known to the administrator as will enable the creditors to make an informed decision about the recommendation made by the administrator.
- Whether there are any transactions that appear to the administrator to be voidable transactions in respect of which money, property or other benefits may be recoverable by a liquidator under Part 5.7B of the CA 2001 (see Practice note, Voidable transactions: general principles).
- Details of any proposed DOCA. It is not necessary that the administrator set out every provision of the proposed DOCA in the report but the key terms of the proposal should be provided.
- For an overview of the progress and key stages of the voluntary administration process, see Practice note: overview, Voluntary administration: Key stages of the voluntary administration process.
For further relevant information, see: