Creditor Voting at the First and Second Creditors’ Meeting
CREDITOR VOTING AT THE FIRST AND SECOND CREDITORS’ MEETINGS
- The administrator or his nominee must chair the meeting;
- Creditors may participate in meetings by telephone where telephone facilities are available and the chairperson considers it appropriate;
- A resolution put to the vote of a meeting must be decided by majority on the voices unless a poll is demanded by the chairperson, by two or more creditors present and entitled to vote at the meeting, by a person present in person, by proxy or by attorney and representing not less than 10 per cent of the total voting rights of all the persons entitled to vote at the meeting;
- Where a poll is taken, a resolution is carried if:
- a majority in number of the creditors vote in favour; and
- the value of the debts owed by the corporation to those voting in favour of the resolution is more than half the total debts owed to all the creditors participating in the poll.
- If a vote results in a deadlock, the chairperson may resolve the deadlock by exercising a casting vote.
- Where the outcome is determined by the exercise of the chairperson’s casting vote, any creditor may apply to the court for a review of the outcome and appropriate order.
- Secured creditors may vote at creditors’ meetings in respect of their debts without forfeiting their security.
- If a creditor believes that the outcome of a meeting has been influenced by the votes of creditors who are associated entities of the company the creditor may apply to the court for an appropriate order, including orders setting aside the resolution and reconvening the meeting.