Insolvency Practice Rules (Corporations) 2016

In force

Administered by

Department of the Treasury

This item is authorised by the following title:

Corporations Act 2001

Superseded version

View latest version

View as made version

F2021C00011 C04

23 December 2020 - 31 December 2020

Table of contents

Part 1—Introduction
Division 1—Introduction
1-1 Name
1-10 Authority
Division 5—Definitions
5-5 The Dictionary
5-10 What is a current registration?
5-15 Meaning of material personal interest
Part 2—Registering and disciplining practitioners
Division 15—Register of Liquidators
15-1 Register of Liquidators
Division 20—Registering liquidators
20-1 Qualifications, experience, knowledge and abilities required by applicants for registration
20-5 Conditions on registration of liquidators
Division 35—Notice requirements
35-1 Events of which a registered liquidator must notify ASIC
Division 40—Disciplinary and other action
40-1 Industry bodies that may notify ASIC of grounds for disciplinary action
Division 50—Part 2 committees
50-1 Authority
50-5 Part 2 committee may generally determine its own procedures
50-5 Part 2 committee may generally determine its own procedures
50-5 Part 2 committee may generally determine its own procedures
50-6 Virtual meetings (1) This section applies in relation to any meeting of a Part 2 committee, including a meeting convened for the purposes of interviewing an applicant under the Insolvency Practice Schedule (Corporations). Meetings may be held using virtual meeting technology (2) Virtual meeting technology may be used in holding the meeting, provided the technology gives each member of the committee a reasonable opportunity to participate without being physically present in the same place. (3) All members so participating in the meeting are taken for all purposes to be present in person at the meeting while so participating. (4) If virtual meeting technology is used in holding the meeting, each member must be given the opportunity (at the election of the member) to: (a) participate in the vote in real time; or (b) where practicable, record a vote in advance of the meeting. Place and time of virtual meetings (5) If any of the members is entitled to physically attend the meeting: (a) the place for the meeting is taken to be: (i) if there are 2 or more locations at which persons who are entitled to physically attend the meeting may do so—the main location for the meeting as set out in the notice of the meeting; and (ii) otherwise—the location where the persons may physically attend the meeting; and (b) the time for the meeting is taken to be the time at the place for the meeting. (6) If none of the members is entitled to physically attend the meeting: (a) the place for the meeting is taken to be the address of the ASIC office of ASIC’s delegate to the committee; and (b) the time for the meeting is taken to be the time at the place for the meeting. Tabling of documents at virtual meetings (7) If: (a) virtual meeting technology is to be used in holding a meeting; and (b) a document is required or permitted to be tabled at the meeting; the document is taken to have been tabled at the meeting if the document is given to the persons entitled to attend the meeting before or at the meeting. 50-7 Electronic recording and keeping of minutes (1) If minutes are required to be recorded, the minutes may be recorded in electronic form if, at the time of the recording of the minutes, it was reasonable to expect that the minutes would be readily accessible so as to be useable for subsequent reference. (2) If minutes are required to be kept at a place, the requirement is taken to be satisfied if: (a) an electronic form of the minutes is open for inspection at the place in accordance with the Act, the regulations or these Rules; and (b) having regard to all the relevant circumstances at the time of the generation of the electronic form of the minutes, the method of generating the electronic form of the minutes provided a reliable means of assuring the maintenance of the integrity of the information contained in the minutes; and (c) at the time of the generation of the electronic form of the minutes, it was reasonable to expect that the information contained in the electronic form of the minutes would be readily accessible so as to be useable for subsequent reference. (3) For the purposes of paragraph (2)(b), the integrity of information contained in the minutes is maintained if, and only if, the information has remained complete and unaltered, apart from: (a) the addition of any endorsement; or (b) any immaterial change; which arises in the normal course of communication, storage or display. 50-10 ARITA may appoint a member of a Part 2 committee
50-15 Knowledge and experience required of a member of a Part 2 committee appointed by ARITA
50-20 Chair of a Part 2 committee
50-25 Resignation of Part 2 committee members
50-30 Part 2 committee to be reconstituted—removing ARITA members
50-35 Part 2 committee to be reconstituted—removing members appointed by the Minister
50-40 Part 2 committee to be reconstituted—replacing members
50-45 Termination of consideration, and transfer, of a matter
50-50 Duty to disclose interests
50-55 Natural justice and rules of evidence
50-60 Decisions made at a meeting
50-65 Decisions made without a meeting
50-70 Keeping records of decisions
(2) A written record of a decision of a Part 2 committee may be kept in electronic form if, at the time of the making of the record, it was reasonable to expect that the record would be readily accessible so as to be useable for subsequent reference. (3) If a written record of a decision of a Part 2 committee is required to be kept at a place, the requirement is taken to be satisfied if: (a) an electronic form of the record is open for inspection at the place in accordance with the Act, the regulations or these Rules; and (b) having regard to all the relevant circumstances at the time of the generation of the electronic form of the record, the method of generating the electronic form of the record provided a reliable means of assuring the maintenance of the integrity of the information contained in the record; and (c) at the time of the generation of the electronic form of the record, it was reasonable to expect that the information contained in the electronic form of the record would be readily accessible so as to be useable for subsequent reference. (4) For the purposes of paragraph (3)(b), the integrity of information contained in a record is maintained if, and only if, the information has remained complete and unaltered, apart from: (a) the addition of any endorsement; or (b) any immaterial change; which arises in the normal course of communication, storage or display. 50-75 Inquiries by a Part 2 committee
50-80 Interviewing applicants
50-85 Interviewing liquidators—proposed cancellation of registration
50-90 Decisions on disciplinary matters
50-95 Reports of a Part 2 committee
50-100 Industry disciplinary bodies to which a Part 2 committee may disclose information
Part 3—General rules relating to external administrations
Division 60—Remuneration and other benefits received by external administrators
60-2 External administrator must not derive profit or advantage from the administration of the company—exceptions
Division 70—Information
70-1 Time for complying with reasonable requests
70-5 Notice requirements for unreasonable requests
70-10 Right of creditors to request information etc. from external administrator
70-15 Right of individual creditor to request information etc. from external administrator
70-20 Right of members to request information etc. from external administrator in a members’ voluntary winding up
70-25 Right of individual member to request information etc. from external administrator in a members’ voluntary winding up
70-30 Initial information required to be given to creditors in certain administrations
70-35 Initial remuneration notice
70-40 Report about dividends to be given in certain external administrations
70-45 Reports about remuneration to be given before remuneration determinations are made
70-50 Report about remuneration to be given by provisional liquidators
70-55 Requests for information by the Commonwealth
70-60 Reporting to ASIC
Division 75—Meetings
Subdivision A—Preliminary
75-1 Authority
Subdivision B—Convening meetings
75-5 When certain meetings must be convened
75-10 Persons to whom notice of meetings to be given
75-15 How notice of meetings to be given
75-20 Time for giving notice of meetings
75-25 Notice about voting by proxy and appointment of attorney
75-30 Time and place of meetings
75-35 Notices of meetings held using virtual meeting technology (1) This section applies if virtual meeting technology is to be used in holding a meeting. (2) The notice of the meeting must include sufficient information to allow a person entitled to attend the meeting to participate in the meeting by means of the technology. (3) Subsection (2) also applies in relation to a notice of the adjournment of a meeting if virtual meeting technology is to be used in holding the adjourned meeting.
75-40 Notification of meetings on ASIC website
Subdivision C—Procedures at meetings
75-50 Presiding at meetings
75-70 Proposed resolutions and amendments of proposed resolutions
75-75 Virtual meetings Meetings held using virtual meeting technology (1) Virtual meeting technology may be used in holding a meeting, provided the technology gives all persons entitled to attend the meeting a reasonable opportunity to participate without being physically present in the same place. (2) All persons so participating in the meeting are taken for all purposes to be present in person at the meeting while so participating. (3) A vote taken at the meeting must be taken on a poll, and not on a show of hands. (4) All persons so participating in the meeting who are entitled to vote at the meeting must be given the opportunity (at the election of the voter) to: (a) participate in the vote in real time; or (b) where practicable, record a vote in advance of the meeting. Place and time of virtual meetings (5) If any of the persons entitled to attend the meeting is entitled to physically attend the meeting: (a) the place for the meeting is taken to be: (i) if there are 2 or more locations at which persons who are entitled to physically attend the meeting may do so—the main location for the meeting as set out in the notice of the meeting; and (ii) otherwise—the location where the persons may physically attend the meeting; and (b) the time for the meeting is taken to be the time at the place for the meeting. (6) If none of the persons entitled to attend the meeting is entitled to physically attend the meeting: (a) the place for the meeting is taken to be: (i) if the meeting concerns no more than 1 company under administration—the registered office of the company; or (ii) if the meeting concerns a pooled group—the contact address specified in the pooling determination; and (b) the time for the meeting is taken to be the time at the place for the meeting. Tabling of documents at virtual meetings (7) If: (a) virtual meeting technology is to be used in holding a meeting; and (b) a document is required or permitted to be tabled at the meeting; the document is taken to have been tabled at the meeting if the document is given to the persons entitled to attend the meeting before or at the meeting.
75-85 Entitlement to vote at meetings of creditors
75-86 Other persons entitled to vote—persons by whom money is advanced to a company
75-87 Votes of secured creditors
75-90 Evidence relating to proof of debt
75-95 Evidence of liability for debt
75-97 Voting by proxy if financially interested
75-100 Decisions in relation to entitlement to vote at creditors’ meeting
75-105 Quorum
75-110 Voting on resolutions
75-115 When a resolution is passed at a meeting of creditors after a poll is demanded
75-120 When a resolution is passed at a meeting of contributories after a poll is demanded
75-125 Resolution about remuneration must deal only with remuneration
75-130 When a resolution is passed without a meeting of creditors
75-135 When a resolution is passed without a meeting of contributories
75-140 Adjournment of meetings of creditors
75-145 Minutes of meetings of creditors
75-145 Minutes of meetings of creditors
75-146 Electronic recording and keeping of information (1) This section applies to any information that is required or permitted to be recorded or kept under the Act, the regulations or these Rules, including but not limited to a record of the minutes of proceedings at a meeting. (2) The information may be recorded in electronic form if, at the time of the recording of the information, it was reasonable to expect that the information would be readily accessible so as to be useable for subsequent reference. (3) If the information is required to be kept at a place, the requirement is taken to be satisfied if: (a) an electronic form of the information is open for inspection at the place in accordance with the Act, the regulations or these Rules; and (b) having regard to all the relevant circumstances at the time of the generation of the electronic form of the information, the method of generating the electronic form of the information provided a reliable means of assuring the maintenance of the integrity of the information; and (c) at the time of the generation of the electronic form of the information, it was reasonable to expect that the electronic form of the information would be readily accessible so as to be useable for subsequent reference. (4) For the purposes of paragraph (3)(b), the integrity of information contained in an electronic form is maintained if, and only if, the information has remained complete and unaltered, apart from: (a) the addition of any endorsement; or (b) any immaterial change; which arises in the normal course of communication, storage or display. Subdivision D—Rules about proxies and attorneys
75-150 Appointment of proxies
75-152 External administrator holding a proxy may appoint deputy
75-155 Person may attend and vote by attorney
Subdivision E—Additional rules about pooled groups
75-180 Meetings of eligible unsecured creditors
75-185 Copy of notice etc. to be given to certain creditors of the company
75-190 When is a resolution passed at a meeting—pooled groups
75-195 Directions to external administrator to convene a meeting—when reasonable and not reasonable
Subdivision F—Additional rules for particular kinds of external administration
75-225 Companies under administration—how certain meetings are convened
Subdivision G—Other rules about meetings
75-250 Directions to external administrator to convene a meeting—when reasonable and not reasonable
75-255 Notice requirements for unreasonable directions
75-265 Requirements relating to meetings to remove external administrator of a company
75-270 Substantial compliance with Division is sufficient
Division 80—Committees of inspection etc.
80-5 Eligibility and procedures
80-10 Resignation, removal and vacancies
80-15 Reasonable requests for information etc.
80-20 Time for complying with reasonable requests
80-25 Notice requirements for unreasonable requests
Division 90—Review of the external administration of a company
90-1 Authority
90-4 Appointment of reviewing liquidator by creditors etc.
90-7 Limits on reviewing remuneration, costs and expenses
90-12 Notice to be given if ASIC appoints a reviewing liquidator
90-18 Declaration of relevant relationships of proposed reviewing liquidator
90-22 Powers and duties of reviewing liquidators
90-24 Reporting by reviewing liquidators

Insolvency Practice Rules (Corporations) 2016

Legislation text