427Explanatory statement required to accompany notice of meeting etc

#### 427 Explanatory statement required to accompany notice of meeting etc 427 Explanatory statement required to accompany notice of meeting etc > > (1) An explanatory statement must accompany every notice sent— > > > > > (a) to a creditor of a co-operative calling the court ordered meeting to obtain agreement to the compromise or arrangement; or > > > > > (b) to a member of a co-operative for the conduct of the special postal ballot to obtain agreement to the compromise or arrangement. > > > (2) In every notice of a meeting referred to in subsection (1) given by advertisement, there must be included either a copy of the explanatory statement or notification of the place at which and the way in which creditors entitled to attend the meeting may obtain copies of the explanatory statement. > > > (3) The explanatory statement must— > > > > > (a) explain the effect of the compromise or arrangement and, in particular, state— > > > > > > > (i) material interests of the directors, whether as directors, as members or creditors of the co-operative or otherwise; and > > > > > > > (ii) the effect on the interests of the compromise or arrangement in so far as the effect is different from the effect on the like interests of other persons; and > > > > > (b) state the information prescribed by the National Regulations; and > > > > > (c) state other information that— > > > > > > > (i) is material to the making of a decision by a creditor or member whether or not to agree to the compromise or arrangement; and > > > > > > > (ii) is within the knowledge of the directors; and > > > > > > > (iii) has not previously been disclosed to the creditors or members. > > > (4) Subsection (1) (a) does not apply to a creditor whose debt is not more than $200 (or another amount prescribed by the National Regulations) unless the Supreme Court otherwise orders. > > > (5) The notice calling the meeting sent to a creditor referred to in subsection (1) (a) must state a place at which a copy of the explanatory statement can be obtained on request. > > > (6) The co-operative must comply with a request under subsection (5) as soon as practicable.