Section 393 - Information as to compromises or arrangements with creditors and members.

Disclosure of compromise terms required when meetings for reconstruction are called, with mandated notice content and penalties for noncompliance.

When a meeting of creditors or members is called under the reconstruction provisions, the company must send with each notice a statement setting out the terms of the proposed compromise or arrangement and explaining its effect, including any material interests of directors, the managing director or manager and how those interests are affected. Equivalent information must be given in respect of trustees for debenture holders where their rights are affected. Notices by advertisement must either include the statement or indicate how entitled persons may obtain free copies. Noncompliance attracts fines and officers must notify the company of relevant personal matters.