Overview

There are now four Qualifying Decision Procedures specifically defined by the rules, namely:

• Virtual meeting;
• Correspondence;
• Electronic Voting; and
• Physical Meetings.

Physical meetings may only be used in exceptional circumstances.

In addition, deemed consent can be used to obtain a decision from creditors but it is not a ‘decision procedure’.  This distinction is critical as only decision procedures can be used for the approval of remuneration

Virtual meetings: A virtual meeting is one where creditors are not invited or allowed to be at a physical location but may participate by way of telephone or video conferencing.

Electronic Voting: Electronic voting is an electronic system whereby creditors may vote without having to attend a physical location to do so by the decision date. Systems like Survey Monkey or similar would best fit this process.

Correspondence: When seeking a decision by correspondence, creditors will be sent various proposed resolutions and will then complete and return the voting form by the decision date.

Physical meeting: A physical creditors’ meeting may only be called if the “10 10 10” rule is met. After notice of a decision-making process has been sent to creditors, a physical meeting can be requisitioned if either of the following conditions is met:

• 10% of the value of creditors request a meeting;
• 10% of the total number of creditors request a meeting or
• 10 individual creditors request a meeting.

Deemed consent: Alternatively, an office holder may send creditors a notice of resolutions by deemed consent. Creditors are deemed to have consented to a decision or resolution after notice of the decision or resolution is sent to creditors and fewer than 10% in value have objected to it.

If objections are not received by 23.59 the day prior to the decision date creditors will be deemed to have consented to the decision or resolution.