Published 15 August 2010
Commerce Minister Simon Power said on Friday parts of the Companies Act that relate to schemes of arrangement & amalgamations for large companies would be amended to better align with the Takeovers Code regime.
Once enacted, the changes would mean affected amalgamations would have to be done as schemes of arrangement.
Shareholders would have to be given an independent advisor’s report clearly outlining the merits of the proposed transaction before voting. In addition, companies would have to gain a similar level of support from shareholders to approve a transaction as they would for a takeover to succeed under the Takeovers Code.
Mr Power said shareholders were being asked under present rules to make significant decisions based on inadequate information. He expected legislation to be introduced next year.
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Attribution: Ministerial release, story written by Bob Dey for the Bob Dey Property Report.