Section 369. Information as to compromise or arrangement with creditors and members

(1) If a meeting is summoned under this Subdivision, every notice summoning the meeting—

(a) which is sent to a creditor or member shall be accompanied with a statement explaining the effect of the compromise or arrangement and in particular stating any material interests of the directors, whether as directors or as members or as creditors of the company or otherwise, and the effect of the compromise or arrangement so far as it is different from the effect on the similar interests of other persons; and

(b) which is given by advertisement shall either contain the statement referred to in paragraph (a) or a notification of the place at which and the manner in which the creditors or members entitled to attend the meeting may obtain copies of such a statement.

(2) Where the compromise or arrangement affects the rights of debenture holders, the statement shall give the like explanation with respect to the trustee for the debenture holders as, under subsection (1), a statement is required to give with respect to the directors.

(3) If a notice given by advertisement includes a notification that copies of a statement can be obtained, every creditor or member entitled to attend the meeting shall on making an application in the manner indicated in the notice, be furnished with a copy of the statement free of charge by the company.

(4) Each director and each trustee for debenture holders shall provide the necessary information on matters relating to each director and each trustee for debenture holders for the purposes of this section within seven days of the receipt of a request by the company in writing.

(5) The company and every officer who contravene this section commit an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding one million ringgit or to both.

(6) For the purposes of subsection (5), the officer of the company includes any liquidator of the company and any trustee for debenture holders.

(7) Notwithstanding subsection (5), a person shall not be liable under that subsection if he shows that the default was due to the refusal of any other person, being a director or trustee for debenture holders, to supply the necessary particulars as to the interests of the director or trustee for the debenture holders.