207.
| (1) Where a meeting of creditors or any class of creditors or of members or of any class of members is summoned under the provision of section 206, there shall
| | (a) together with every notice summoning the meeting which is sent to a creditor or member, be sent a statement explaining the effect of the compromise or arrangement and in particular, stating any material interest of the directors of the company, whether as is directors or 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 a statement as is referred to in paragraph (a) 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. | | |
|
|
| (2) Where the compromise or arrangement affects rights of debenture holders of the company, the statement referred to in paragraph (a) of subsection (1) shall give the like explanation as respects the trustee of any deed for securing the issue of the debentures as it is required to give as respects the directors of the company. |
|
| (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 an application in the manner specified by the notice, be furnished with a copy of the statement by the company free of charge. |
|
| (4) Where a company makes default in complying with any requirement of the provision of this section, the company and every officer of the company who is in default shall be guilty of an offence and shall be liable to a fine not exceeding five thousand rupees, and for the purposes of this subsection any liquidator of the company and any trustee of a deed for securing issue of debentures of the company shall be deemed to be an officer of the company: |
|
| (5) 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 the provisions of this subsection shall be guilty of an offence and shall be liable to a fine not exceeding five hundred rupees. |
|
|
Sri Lanka Consolidated Acts