145Information as to compromise with creditors

145 Information as to compromise with creditors

145 Information as to compromise with creditors

(1) Where a meeting is convened under section 144, the authority shall—

(a) with every notice convening the meeting that is sent to a creditor, send a statement (in this section referred to as the explanatory statement)—

(i) explaining the effect of the compromise or arrangement and, in particular, stating any material interests of the members of the authority, whether as members or creditors of the authority or otherwise, and the effect on those interests of the compromise or arrangement in so far as that effect is different from the effect on the like interests of other persons, and

(ii) setting out such information as is prescribed and any other information that is material to the making of a decision by a creditor whether or not to agree to the compromise or arrangement, being information that is within the knowledge of the members of the authority and has not previously been disclosed to the creditors, and

(b) in every notice convening the meeting that is given by advertisement, include either a copy of the explanatory statement or a notification of the place at which and the manner in which creditors entitled to attend the meeting may obtain copies of the explanatory statement.

(1A) An explanatory statement is declared to be an applied Corporations legislation matter for the purposes of Part 3 of the Corporations (Ancillary Provisions) Act 2001 in relation to the provisions of Regulation 5.1.01 of, and Part 2 of Schedule 8 to, the Corporations Regulations of the Commonwealth, subject to the following modifications—

(a) a reference in those provisions to a company is to be read as a reference to an authority,

(b) a reference in those provisions to directors of a company is to be read as a reference to members of an authority,

(c) a reference in those provisions to the registered office of a company is to be read as a reference to the principal place of business of an authority,

(d) a reference in those provisions to ASIC is to be read as a reference to the Minister for Agriculture,

(e) such other modifications (within the meaning of Part 3 of the ) as may be prescribed by the regulations.