The Australian Securities & Investments Commission (“ASIC”) is entitled to attend any meeting of creditors or contributories held under Corporations Act (Section 75-30) of Schedule 2-Insolvency Practice Schedule. ASIC has informed the registered liquidators about starting their Pilot Program involving their staff to attend creditor’s meetings in the first half of 2019.
The Pilot Program is to establish and understand how the Registered Liquidator conducts the creditors meetings and reports and accounts to creditors on the whole. The Pilot Program is to understand the information provided to creditors prior to creditors meetings and most of all the assessment of creditor claims for voting purposes.
The Pilot Program will commence sometime in February 2019 and conclude in June 2019.
Creditors Meetings will be selected randomly based on:
- Type of Administration; and
- Location and size of the Registered Liquidator’s Firm.
The ASIC staff will advise the Registered Liquidators of their intention to attend creditors meetings and their intention to observe and participate in the meetings if appropriate.
ASIC intends to provide feedback to Registered Liquidators whether the creditors meetings are being held pursuant to the Law and Standards of the professional conduct. The results of the Pilot Program will be shared with all Registered Liquidators. ASIC will report and identify good meeting practices and on behaviours and practices that could be improve to increase creditor awareness and understand the insolvency processes and outcomes.