Part 26U.K.[F1Arrangements and reconstructions: general]

Textual Amendments

Modifications etc. (not altering text)

C1Pt. 26 power to apply (with modifications) conferred (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 118(1)(2)154 (with Sch. 5)

C2Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))

Meeting of creditors or membersU.K.

896Court order for holding of meetingU.K.

(1)The court may, on an application under this section, order a meeting of the creditors or class of creditors, or of the members of the company or class of members (as the case may be), to be summoned in such manner as the court directs.

(2)An application under this section may be made by—

(a)the company,

(b)any creditor or member of the company,

[F2(c)if the company is being wound up, the liquidator, or

(d)if the company is in administration, the administrator.]

[F3(3)Section 323 (representation of corporations at meetings) applies to a meeting of creditors under this section as to a meeting of the company (references to a member of the company being read as references to a creditor).]

[F4(4)This section is subject to section 899A (moratorium debts, etc).]

Textual Amendments

F2S. 896(2)(c)(d) substituted (6.4.2008) for s. 896(2)(c) and preceding word by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 3(1), Sch. 1 para. 249(2) (with arts. 6, 11, 12)

Modifications etc. (not altering text)

897Statement to be circulated or made availableU.K.

(1)Where a meeting is summoned under section 896—

(a)every notice summoning the meeting that is sent to a creditor or member must be accompanied by a statement complying with this section, and

(b)every notice summoning the meeting that is given by advertisement must either—

(i)include such a statement, or

(ii)state where and how creditors or members entitled to attend the meeting may obtain copies of such a statement.

(2)The statement must—

(a)explain the effect of the compromise or arrangement, and

(b)in particular, state—

(i)any material interests of the directors of the company (whether as directors or as members or as creditors of the company or otherwise), and

(ii)the effect on those interests of the compromise or arrangement, in so far as it is different from the effect on the like interests of other persons.

(3)Where the compromise or arrangement affects the rights of debenture holders of the company, the statement must 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.

(4)Where a notice given by advertisement states that copies of an explanatory statement can be obtained by creditors or members entitled to attend the meeting, every such creditor or member is entitled, on making application in the manner indicated by the notice, to be provided by the company with a copy of the statement free of charge.

(5)If a company makes default in complying with any requirement of this section, an offence is committed by—

(a)the company, and

(b)every officer of the company who is in default.

This is subject to subsection (7) below.

(6)For this purpose the following are treated as officers of the company—

(a)a liquidator or administrator of the company, and

(b)a trustee of a deed for securing the issue of debentures of the company.

(7)A person is not guilty of an offence under this section if he shows that the default was due to the refusal of a director or trustee for debenture holders to supply the necessary particulars of his interests.

(8)A person guilty of an offence under this section is liable—

(a)on conviction on indictment, to a fine;

(b)on summary conviction, to a fine not exceeding the statutory maximum.

Modifications etc. (not altering text)

898Duty of directors and trustees to provide informationU.K.

(1)It is the duty of—

(a)any director of the company, and

(b)any trustee for its debenture holders,

to give notice to the company of such matters relating to himself as may be necessary for the purposes of section 897 (explanatory statement to be circulated or made available).

(2)Any person who makes default in complying with this section commits an offence.

(3)A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Modifications etc. (not altering text)