COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 198 Information as to compromises with creditors and members.

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 198

Information as to compromises with creditors and members.

198.(1) Where a meeting of creditors or any class of creditors or of members
or any class of members is summoned under section one hundred and ninety-seven
there shall

(a)with every notice summoning the meeting which is sent to a creditor or
member, be sent also a statement explaining the effect of the compromise or
arrangement and in particular stating any material interests of the directors
of the company, whether as directors or as members or as creditors of
the company or otherwise, and the effect thereon of the compromise or
arrangement, in so far as it is different from the effect on the like
interests of other persons; and

(b)in every notice summoning the meeting which is given by advertisement, be
included either such a statement as aforesaid or a notification of the place
at which and the manner in which creditors or members entitled to attend the
meeting may obtain copies of such a statement as aforesaid.

(2) Where the compromise or arrangement affects the rights of debenture
holders of the company, the said statement shall give the like explanation as
respects the trustees of any deed for securing the issue of the debentures as
it is required to give as respects the company's directors.

(3) Where a notice given by advertisement includes a notification that copies
of a statement explaining the effect of the compromise or arrangement proposed
can be obtained by creditors or members entitled to attend the meeting, every
such creditor or member shall, on making application in the manner indicated
by the notice, be furnished by the company free of charge with a copy of the
statement.

(4) Subject to sub-section (5), where a company fails to comply with any
requirement of this section, the company and every officer of the company who
is in default shall be liable to a fine not exceeding five hundred pounds, and
for the purpose of this sub-section any liquidator of the company and any
trustee of a deed for securing the issue of debentures of the company shall be
deemed to be an officer of the company.

(5) A person shall not be liable under sub-section (4) if that person shows
that the default was due to the refusal of any other person, being a director
or trustee for debenture holders, to supply the necessary particulars as to
his interests.

(6) It shall be the duty of any director of the company and of any trustee for
debenture holders of the company to give notice to the company of such matters
relating to himself as may be necessary for the purposes of this section, and
any person who makes default in complying with this sub-section shall be
liable to a fine not exceeding fifty pounds.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 198