427Explanatory 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.