428Requirements for explanatory statement

428 Requirements for explanatory statement

(1) An explanatory statement must be as approved by the Registrar.

(2) If the compromise or arrangement affects the rights of debenture holders, the explanatory statement must state:

(a) material interests of the trustees for the debenture holders, whether as trustees for the debenture holders, as members or creditors of the co-operative or otherwise; and

(b) the effect on the interests of the compromise or arrangement to the extent that the effect is different from the effect on the like interests of other persons.

(3) If a notice given by advertisement includes a notification that copies of the explanatory statement can be obtained in a particular way, the co-operative must give a copy of the statement free of charge to each creditor or member entitled to attend the meeting or vote in the ballot who applies for it in the appropriate way.

(4) Each person who is a director or trustee for debenture holders must give notice to the co-operative of the matters relating to the person required to be included in the explanatory statement.