New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 354

354 Explanatory statement required to accompany notice of meeting etc

(1) An explanatory statement must accompany every notice:

(a) that is sent to a creditor of a co-operative convening the court ordered meeting to obtain agreement to the compromise or arrangement, or

(b) that is sent to a member of a co-operative for the purpose of the conduct of the special postal ballot to obtain agreement to the compromise or arrangement.

(2) In every notice of such a meeting that is given by advertisement there must be included either a copy of the explanatory statement or notification of the place at which and the manner 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 any material interests of the directors, whether as directors, as members or creditors of the co-operative 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

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

(4) Subsection (1) (a) does not apply in the case of a creditor whose debt does not exceed $200 unless the Court otherwise orders but the notice convening the meeting that is sent to such a creditor must specify a place at which a copy of the explanatory statement can be obtained on request and, if the creditor makes such a request, the co-operative must comply with the request as soon as practicable.