determined by related entity (1) Subsection (2) applies where, on the
application of a creditor of a company or Part 5.1 body, the Court is
satisfied:
- (a)
- that a proposed resolution has been voted on at:
- (i)
- in the case of a companya meeting of creditors of the company held:
(A) under Part 5.3A or a deed of company arrangement executed by the
company; or
(B) in connection with winding up the company; or
- (ii)
- in
the case of a Part 5.1 bodya meeting of
creditors, or of a class of creditors, of the body held
under Part 5.1; and
- (b)
- that, if the vote or votes that a particular related creditor, or
particular related creditors, of the company or body cast on the proposed
resolution had been disregarded for the purposes of determining whether or not
the proposed resolution was passed, the proposed resolution:
- (i)
- if it was in fact passedwould not have been passed; or
- (ii)
- if in fact it was not passedwould have been passed;
or the question would have had to be decided on a casting vote; and
- (c)
- that the passing of the proposed resolution, or the failure to pass it, as
the case requires:
- (i)
- is contrary to the interests of the creditors as a whole or of that class
of creditors as a whole, as the case may be; or
- (ii)
- has prejudiced, or is reasonably likely to prejudice, the interests of
the creditors who voted against the proposed resolution, or for it, as the
case may be, to an extent that is unreasonable having regard to:
(A) the benefits resulting to the related creditor, or to some or all of the
related creditors, from the resolution, or from the failure to pass the
proposed resolution, as the case may be; and
(B) the nature of the relationship between the
related creditor and the company or body, or of the
respective relationships between the related creditors
and the company or body; and
(C) any other relevant matter.
(2) The Court may make one or
more of the following:
- (a)
- if the proposed resolution
was passedan order setting aside the resolution;
- (b)
- an order that the proposed resolution be considered and voted on at a
meeting of the creditors of the company or body, or of that class of
creditors, as the case may be, convened and held as specified in the order;
- (c)
- an order directing that the related creditor is not, or such of the
related creditors as the order specifies are not, entitled to vote on:
- (i)
- the proposed resolution; or
- (ii)
- a resolution to amend or vary the proposed resolution;
- (d)
- such other orders as the Court thinks necessary.
(3) In this section:
"related creditor", in relation to a company or Part 5.1 body, in
relation to a vote, means a person who, when the vote was cast, was a
related entity, and a creditor, of the company or body.