If the net worth of a public company decreases to half or less of the paid-up capital, within thirty-five days of receiving such information, the directors shall prepare an appropriate strategy for the benefit of the company and shareholders, and in the general meeting held immediately after the information is received. A separate proposal will have to be submitted. But if the approval of the general meeting is required to implement that strategy, a special general meeting should be called as soon as possible.
(2) In accordance with sub-section (1), the director of the company who does not prepare a strategy, does not put a proposal in the annual general meeting or does not call a special general meeting or knowingly allows such a meeting to continue will be punished in accordance with this Act.
(3) If the director determines that the net assets of the company have decreased due to bad faith or malicious negligence in accordance with sub-section (1), the director shall also pay the compensation.