What is the second creditors meeting?

The second creditors meeting is an official meeting that must be held within 25 days of a company entering voluntary administration.

The voluntary administrator uses the time between the first and second creditors meetings to gain a deeper understanding of:

  • The company’s assets and liabilities
  • Why it fell into insolvency
  • Whether it can be saved

At least five business days before the second creditors meeting, the voluntary administrator must send creditors:

The voluntary administrator must also advertise the meeting on ASIC’s insolvency notices website.

During the meeting, the voluntary administrator will offer their opinion on the three options available to creditors:

  1. Return the company to the control of the directors
  2. Approve a deed of company arrangement
  3. Put the company in liquidation