What are the details to be disclosed under the explanatory statement of the notice of the meeting in respect of the scheme of compromise or arrangement?

CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · December 2019
What are the details to be disclosed under the explanatory statement of the notice of the meeting in respect of the scheme of compromise or arrangement?

Answer & Explanation:

Explanatory Statement of the notice of meeting in respect of the scheme of compromise or arrangement include the following: (a) Parties involved in compromise or arrangement; (b) Appointed date, effective date, share exchange ratio (if applicable) and other considerations, if any; (c) Summary of valuation report (if applicable) including basis of valuation and fairness opinion of the registered valuer, if any, and the declaration that the valuation report is available for inspection at the registered office of the company; (d) Details of capital or debt restructuring, if any; (e) Rationale for the compromise or arrangement; (f) Benefits of the compromise or arrangement as perceived by the Board of directors to the company, members, creditors and others (as applicable); (g) Amount due to unsecured creditors.

Topics: Schemes of Compromise or Arrangement

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