Most Read Contributor in Australia, September 2016
In the matter of GR Finance (Administrators Appointed)
 VSC 528, Gardiner AsJ of the Supreme Court of Victoria
recently made orders pursuant to section 447A of the
Corporations Act(Cth) (Act)
that Part 5.3A of the Act was to operate in relation to the
administration of GR Finance Limited (Administrators Appointed)
(GR Finance) so that the first meeting of
creditors could be held concurrently with the meeting required to
be held when new administrators were appointed.
The company was placed into administration by its directors on
12 October 2011. Due to a conflict of interest the original
administrators retired on 13 October 2011 and the Plaintiffs were
appointed joint and several administrators of GR Finance on 13
Pursuant to 436E of the Act, the last day for convening the
first meeting of creditors (First Meeting) was 20
October 2011. The purpose of the First Meeting is to
determine whether to appoint a committee of creditors and if so,
who are to be their committee's members. It is also
open to creditors to replace the administrators.
Pursuant to section 449C of the Act, the administrators were
also required to convene a meeting (449C
Meeting) within 5 business days after being appointed so
that the creditors could determine whether to remove them from
office and, if so, appoint someone else as administrator of the
company. As a result of the timing in this case, that meeting
was to take place by 20 October 2011.
As a result of the dates for the two meetings and the cross-over
of the business to take place at those meetings, the
administrators, represented by Holding Redlich,
that the meetings be held concurrently; and
that the requirements for notice of the 449C Meeting to the
company's creditors and for advertising under section
449C(5) of the Act be dispensed with on the basis that notice had
already been given with respect to the First Meeting.
His Honour held that "the convening of two separate
meeting serves no good purpose in my view and the time limits
imposed by the Act would not permit it in any event. The
statutory agenda stipulated for each meeting can practicably be
dealt with at the same time."
As for the giving of notice and advertising, given that the
First Meeting was required to be held within 8 business days after
the administration began and the 449C Meeting was required to be
convened within 5 business days after the new
administrator's appointment, His Honour stated that it was
not practicable to require the giving of written notice of the 449C
Meeting and advertising of it two business days before that
In making his orders, Gardiner AsJ noted that in McGrath v
Henry Walker Elton Group Limited  NSWSC 32, the Supreme
Court of NSW had made orders in very similar terms.
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