CLAW3206 Lecture Notes - Lecture 7: Greenmail, Aluminium-Conductor Steel-Reinforced Cable, Management Buyout
30 Jul 2018
School
Department
Course
Professor
Document Summary
Claw3206 regulation of mergers and acquisitions week 6 s 411 scheme of arrangement. Instead of making a formal takeover bid, it is possible for a bidder to achieve control of a target by effecting a scheme of arrangement under s 411. Scheme of arrangement: a deal between the target company and its shareholders which: Is court-based: becomes binding once the statutory tests are met; and, can be used to compel all shareholders to transfer their shares to a bidder in exchange for cash or other consideration. It is satisfied that the scheme has not been proposed for the purpose of avoiding the takeovers provisions in chapter 6; or: asic produces a statement to the court that it has no objection to the scheme. In making a decision whether to proceed by takeover bid or by scheme of arrangement, the bidder will need to consider various issues.
