Section 255: Notice of proposed compromise

255. Notice of proposed compromise (1) The proponent shall compile, in relation to each class of creditors of the company, a list of creditors known to the proponent who would be affected by the proposed compromise, setting out— (a) the amount owing or estimated to be owing to each of them; and (b) the number of votes which each of them is entitled to cast on a resolution approving the compromise. (2) The proponent shall give to each known creditor, the company, any receiver or liquidator, and deliver to the Registrar for registration— (a) notice of the intention to hold a meeting of creditors, or any 2 or more classes of creditors, for the purpose of voting on the resolution; and (b) a statement— (i) containing the name and address of the proponent and the capacity in which the proponent is acting; (ii) containing the address and telephone number to which inquiries may be directed during normal business hours; (iii) setting out the terms of the proposed compromise and the reasons for it; (iv) setting out the reasonably foreseeable consequences for creditors of the company of the compromise being approved; C35 – 153 [Issue 1] Companies Act (v) setting out the extent of any interest of a director in the proposed compromise; (vi) explaining that the proposed compromise and any amendment to it proposed at a meeting of creditors or any classes of creditors shall be binding on all creditors, or on all creditors of that class, if approved in accordance with section 256; and (vii) containing details of any procedure proposed as part of the proposed compromise for varying the compromise following its approval; and (c) a copy of the list or lists of creditors referred to in subsection (1).