Commonwealth Consolidated Acts

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Variation of composition or scheme of arrangement

  (1)   This section applies to a composition or scheme of arrangement that has been accepted in accordance with this Division.

Variation by special resolution of creditors

  (2)   The creditors, with the written consent of the debtor, may vary the composition or scheme by special resolution at a meeting called for the purpose.

Variation proposal by trustee

  (3)   The trustee may, in writing, propose a variation of the composition or scheme. The trustee cannot propose a variation without the written consent of the debtor.

  (4)   The trustee must give notice of the proposed variation to all the creditors who are entitled to receive notice of a meeting of creditors.

  (5)   The notice must:

  (a)   include a statement of the reasons for the variation and the likely impact it will have on creditors (if it takes effect); and

  (b)   specify a proposed date of effect for the variation (at least 14 days after the notice is given); and

  (c)   state that any creditor may, by written notice to the trustee at least 2 days before the specified date, object to the variation taking effect without there being a meeting of creditors.

  (6)   If no creditor lodges a written notice of objection with the trustee at least 2 days before the specified date, then the proposed variation takes effect on the date specified in the notice.

  (7)   A certificate signed by the trustee stating any matter relating to a proposed variation under this section is prima facie evidence of the matter.

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