The creditors' meeting is next week: lodge your proof now and prepare to vote

Why this meeting matters to your recovery

A creditors' meeting is held about five weeks after the company goes into voluntary administration to decide the company's future. The decisions taken at that meeting determine whether the company returns to the directors, enters a deed of company arrangement or goes into liquidation. Each outcome affects how much you may recover and how long it will take.

To vote at a creditors' meeting you must lodge details of your debt or claim with the liquidator. The liquidator will provide you with a 'proof of debt' form to complete and return before the meeting. If you do not lodge a proof of debt, you cannot vote. Without a vote, you cannot influence the outcome, appoint a committee of inspection or challenge decisions that affect your recovery.

Lodge your proof of debt before the deadline

At least five business days before the meeting, the voluntary administrator must send creditors a notice of meeting, the voluntary administrator's report, the voluntary administrator's statement, a claim form (usually a 'proof of debt' form) and a proxy voting form. The notice will specify the deadline for lodging your proof of debt. That deadline is not negotiable.

You should attach copies of all relevant invoices or other supporting documents to the proof of debt form, because your debt or claim may be rejected if there is insufficient evidence to support it. Gather your contract, purchase orders, delivery dockets, invoices, payment records and correspondence. Complete the proof of debt form accurately, attach supporting documents and return it to the administrator before the stated deadline. Keep proof that you submitted it.

Source: Official guidance

Read the administrator's report before the meeting

You should read the voluntary administrator's report before you attend the second meeting or decide to appoint someone else to vote on your behalf at that meeting. The report contains information about the company's assets, liabilities, the causes of failure and the administrator's opinion about which outcome is in the best interests of creditors. It also estimates the likely return to creditors under each option.

The report may reveal that the company has few assets, significant secured debt or potential preference payment recoveries. It may propose a deed of company arrangement that offers creditors a higher return than immediate liquidation. Understanding these details before the meeting allows you to ask informed questions, challenge assumptions and vote strategically rather than reactively.

Appoint a proxy if you cannot attend

You can appoint an individual as proxy to attend and vote at a meeting on your behalf. Creditors who are companies will have to nominate a person as proxy. You do this by completing a proxy form that is sent out with the notice of meeting. You must provide the completed proxy form to the liquidator before the meeting. If you run a company, appointing a proxy is mandatory if you want to participate.

A 'special proxy' is used when you specify on the proxy form how the proxy holder is to vote on specified resolutions. The proxy holder must vote in accordance with that instruction and cannot change the voting at the meeting. A special proxy ensures your vote is cast exactly as you intend, even if you cannot attend. Complete the proxy form clearly, specify your voting instructions and return it before the deadline stated in the notice.

Talk to other creditors and ask clear questions

Other trade creditors often face the same concerns about recovery prospects, timelines and the administrator's recommendations. Speaking with them before the meeting helps you understand whether others share your view, whether a committee of inspection should be formed and whether the proposed outcome genuinely serves creditors' interests. Collective pressure at a meeting carries more weight than a single voice.

At the meeting, ask the administrator to explain any part of the report you do not understand. Ask about asset realisations, the status of debtor recoveries, the likelihood of preference payment claims and the basis for estimated returns. The chairperson of the meeting decides whether to accept the debt or claim for voting purposes. The chairperson may decide a creditor does not have a valid claim and not allow the creditor to vote. If your claim is challenged, be ready to explain it. If you need help preparing your proof of debt, reviewing the administrator's report or understanding your options at the meeting, contact CRP today using the form below. Bring your invoices, contract, correspondence and the meeting notice. The earlier you prepare, the stronger your position when creditors vote.