The agreement may also be terminated by order of the Court of Justice in a number of circumstances, but generally when the terms of the agreement are inappropriate or are not calculated for creditors in general. The audit officer reviews the debtor`s proposal, reviews and inquires about the debtor`s audit issues and reports to creditors. The report must inform creditors of the amount they can expect in connection with the bankruptcy proposal and make a recommendation as to whether it is in the interests of creditors to accept or reject the proposal. With a team of experts from across Australia to discuss your situation, RSM can help you with your personal insolvency contract requirements. Please visit our sites or contact your insolvency expert on site. After adoption, unsecured creditors are bound by the agreement, whether or not they are in favour of the proposal. Unsecured creditors exchange their right to charge the debtor in exchange for a dividend from the funds or real estate made available under the proposal. The supervisory officer reviews your financial affairs and establishes a report for your creditors who: Usually, an IAP ends when all obligations created by the IAP are fulfilled. This usually occurs when the agent has paid the final dividend to creditors. A meeting of creditors must be held within 25 days of the appointment of the supervisory agent (or within 30 days if they are appointed in December) at a time and place favourable to creditors. A registered agent must manage the agreement.
As a general rule, the former liquidator withdraws funds and/or assets and makes a distribution to unsecured creditors. Creditors may, with the debtor`s written agreement, amend an IAP by special decision at a meeting convened for that purpose. In addition, the agent may, with the written consent of the debtor, propose in writing an amendment to the IAP. If no creditor makes a written claim within at least two days of the date indicated in the notice of contract, the proposed amendment takes effect. However, a section 73 proposal may also be terminated as follows: – If the terms of the section proposal are not met, the agent and/or creditors terminate the contract – by court order, generally, on the basis that the composition cannot be made without unfairness or undue delay to creditors, that the creditors` agreement was obtained by a misrepresentation of the former liquidator, or whether it is desirable that the composition be lifted on the basis of non-compliance if the debtor does not comply with the terms of the agreement, the agent is generally required to issue a delay notification requiring the correction of the non-compliance.