Section 281 — Information as to compromises or arrangements with creditors and members

(1) Where a meeting of creditors or any class of creditors, or of
members or any class of members, is called under section 279—

(a) with every notice calling the meeting which is sent to a creditor or
member, there shall be sent also a statement setting forth the terms
of the compromise or arrangement and explaining its effect; and in
particular, stating any material interest of the directors including the
chief executive of the company, whether in their capacity as such or
as members or creditors of the company or otherwise, and the effect
on those interests, of the compromise or arrangement if, and in so
far as, it is different from the effect on the like interest of other
persons; and

(b) in every notice calling the meeting which is given by advertisement,
there shall 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 information
and 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 setting forth the terms of the compromise or arrangement
proposed and explaining its effect can be obtained by creditors or members entitled
to attend the meeting, every creditor or member so entitled shall, on making an
application in the manner indicated by the notice, be furn ished by the company,
free of charge, with a copy of the statement.

(4) Any contravention or default in complying with requirements of this
section shall be an offence liable to a penalty of level 1 on the standard scale; and
for the purpose of this sub -section any liquidator of the company and trustee of a
deed for securing the issue of debentures of the company shall be deemed to be an
officer of the company:

Provided that a person shall not be under this sub -section if he shows that
the default was du e to the refusal of any other person, being a director, including
chief executive or trustee for debenture-holder, to supply the necessary particulars
as to his material interests.

(5) Every director, including chief executive of the company and every
trustee for debenture-holders of the company, shall give notice to the company of
such matters relating to himself as may be necessary for the purposes of this section
and on the request of the company shall provide such further information as may
be necessary for the purposes of this section; and, if he fails to do so within the time
allowed by the company, he shall be liable to a penalty of level 1 on the standard
scale.