Creditors Meetings – Make Your Vote Count

Summary

The Corporations Act 2001 (Cth) ("CA") provides for calling and holding creditors meetings for insolvency external administrations. A corporate creditor can appoint a natural person as its proxy to attend and vote at a creditors meeting on the company's behalf.

Vero Insurance Ltd v Kassem [2010] NSWSC 838 (30 July 2010) ("Vero Insurance") demonstrates that it is vital the proxy form (Form 532) is validly signed by the company in accordance with section 127 CA or by power of attorney. If not, the proxy form will be rejected and the creditor's vote denied. As creditors meetings can only be adjourned in very limited circumstances, meetings cannot be adjourned to allow a creditor to prepare a new proxy form.