Legal Insights

Can an administrator ‘re-do’ a second meeting of creditors?

Andrew Ng

• 15 December 2022 • 1 min read

In the matter of Mediacloud Pty Ltd (Administrators Appointed) [2021] NSWSC 357 the New South Wales Supreme Court demonstrated its wide discretionary power. The decision extended the period of administration of a company to avoid it being automatically wound up for failing to execute a deed of company arrangement within the required time. This, in effect, permitted the administrators to ‘re-do’ a second meeting of creditors, enabling the creditors to decide the company’s future again.

The decision serves as a useful reminder that the court has sufficiently broad discretionary powers under s 447A of the Corporations Act 2001 (Cth) (Act) and s 90-15 of the Insolvency Practice Schedule (Corporations) to make orders as to how Part 5.3A of the Act is to operate during a period of voluntary administration. This is provided any such orders are consistent with the objects set out in s 435A of the Act.