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:
- A notice of the meeting
- The voluntary administrator’s report
- The voluntary administrator’s statement
- A claim form (also known as a proof of debt form)
- A proxy voting form
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:
- Return the company to the control of the directors
- Approve a deed of company arrangement
- Put the company in liquidation