(1)This section applies where, in connection with the transfer to any persons of all or any of the shares in a company, being a transfer resulting from—
(a)an offer made to the general body of shareholders; or
(b)an offer made by or on behalf of some other body corporate with a view to the company becoming its subsidiary or a subsidiary of its holding company; or
(c)an offer made by or on behalf of an individual with a view to his obtaining the right to exercise or control the exercise of not less than one-third of the voting power at any general meeting of the company; or
(d)any other offer which is conditional on acceptance to a given extent,
a payment is to be made to a director of the company by way of compensation for loss of office, or as consideration for or in connection with his retirement from office.
(2)It is in those circumstances the director’s duty to take all reasonable steps to secure that particulars of the proposed payment (including its amount) are included in or sent with any notice of the offer made for their shares which is given to any shareholders.
(3)If—
(a)the director fails to take those steps, or
(b)any person who has been properly required by the director to include those particulars in or send them with the notice required by subsection (2) fails to do so,
he is liable to a fine.