How Voting Works at Creditor Meetings — Step-by-Step Guide

Creditor voting can feel complex at first glance—and in many ways, it is. Unlike standard voting systems, decisions at creditor meetings often require approval by both a majority in number and a majority in value.

This dual-threshold approach is designed to balance fairness between small and large creditors, but it can also create confusion without a clear understanding of the process.

Why Approved Ballot Agents

1. Why Creditor Voting Is Different

At creditor meetings, voting isn’t simply one vote per person. Instead, outcomes are typically determined by:

In most cases, both thresholds must be satisfied for a resolution to pass.

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2. Who Can Vote at a Creditor Meeting?

Unsecured creditors

These creditors can generally vote in full for the amount they are owed.

Secured creditors

Related party creditors

Related parties (such as directors or associated entities) may vote, but their votes can be restricted or disregarded in certain cases.

3. What Is a Proof of Debt?

A proof of debt is a formal declaration confirming a creditor’s claim, including:

How to lodge

Proofs of debt are typically submitted before or at the meeting.

Deadlines

Failure to lodge on time may result in exclusion from voting.

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4. How Are Votes Counted?

Voting is determined using two key tests:

Majority in number

More than half of the creditors voting must support the resolution.

Majority in value

Creditors representing more than 50% of the total debt value must support it.

Both must be satisfied

If one threshold is met but not the other, the result may depend on the chairperson.

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5. Proxy Voting at Creditor Meetings

Creditors can appoint a proxy to vote on their behalf.

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6. Online Creditor Meetings and ASIC Guidance

Creditor meetings can now be held online or in hybrid formats.

According to ASIC guidance, meetings must:

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7. Voluntary Administration vs Liquidation

Voluntary administration

Creditors vote on the company’s future, including:

Liquidation

Voting is more procedural, such as:

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8. The Role of the Chairperson

The chairperson:

Casting vote

hey may exercise a casting vote in the event of a deadlock.

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9. Can Voting Results Be Challenged?

Yes—creditors can challenge outcomes if:

Challenges are typically handled through the courts.

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Streamline Your Creditor Meetings with Vero Voting

Managing creditor meetings—particularly in hybrid or virtual formats—requires precision and compliance.

Vero Voting provides ASIC-compliant technology designed to:

If you’re looking to simplify complex creditor voting processes, Vero offers a reliable, purpose-built solution.