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](/view/html/inforce/current/act-2001-032) in relation to the provisions of Regulation 5.1.01 of, and Part 2 of Schedule 8 to, the [Corporations Regulations](http://www.legislation.gov.au/) 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 [Corporations (Ancillary Provisions) Act 2001](/view/html/inforce/current/act-2001-032)) as may be prescribed by the regulations. > > > > Note— > > > > Part 3 of the [Corporations (Ancillary Provisions) Act 2001](/view/html/inforce/current/act-2001-032) provides for the application of provisions of the [Corporations Act 2001](http://www.legislation.gov.au/) and Part 3 of the [Australian Securities and Investments Commission Act 2001](http://www.legislation.gov.au/) of the Commonwealth as laws of the State in respect of any matter declared by a law of the State (whether with or without modification) to be an applied Corporations legislation matter for the purposes of that Part in relation to those Commonwealth provisions. Section 14 (2) of the [Corporations (Ancillary Provisions) Act 2001](/view/html/inforce/current/act-2001-032) ensures that a declaration made for the purposes of Part 3 of that Act only operates to apply a provision of the Corporations legislation to a matter as a law of the State if that provision does not already apply to the matter as a law of the Commonwealth. If a provision referred to in a declaration already applies as a law of the Commonwealth, nothing in the declaration will affect its continued operation as a law of the Commonwealth. > > > (2) In the case of a creditor whose debt does not exceed $200, subsection (1) (a) does not apply unless the Court otherwise orders but the notice convening the meeting that is sent to such a creditor shall specify a place at which a copy of the explanatory statement can be obtained on request and, where the creditor makes such a request, the authority shall forthwith comply with the request. > > > (3) Where a notice given by advertisement includes a notification that copies of the explanatory statement can be obtained in a particular manner, every creditor entitled to attend the meeting shall, on making application in that manner, be furnished by the authority free of charge with a copy of the explanatory statement. > > > (4) Subject to subsection (6), where an authority contravenes or fails to comply with a requirement of this section, the authority and any member or officer of the authority who is in default are each guilty of an offence. > > > (5) For the purposes of subsection (4), the liquidator of an authority shall be deemed to be an officer of the authority. > > > (6) It is a defence to a prosecution for an offence against subsection (4) if the defendant proves that the default in complying with a requirement of this section is due to the refusal of any other person, being a member of the authority, to supply particulars of the person’s interests for the purposes of the explanatory statement. > > **s 145:** Am 2001 No 34, Sch 2.34 \[5\].