Policy paper

Companies Act 2006: restricting share capital reductions in takeovers - draft statutory instrument

Draft statutory instrument to prohibit a company from using a 'cancellation' scheme of arrangement to facilitate its takeover or merger.

From:
Department for Business, Innovation & Skills
Published
16 January 2015
This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Documents

Ref: BIS/15/26

PDF, 24 KB

Ref: BIS/15/27

PDF, 158 KB

Details

皇冠体育app government plans to amend the Companies Act 2006 to restrict the use of share capital reductions in company takeovers. This change will prohibit a company from using a 鈥榗ancellation鈥� scheme of arrangement to facilitate its takeover or merger.

皇冠体育app draft regulations will not prohibit intra-group restructures, de-mergers, or debt restructuring. It will also not affect takeovers already in progress before these regulations take effect.

An information and impact note is provided which sets out the analysis behind the proposed legislative changes.

Updates to this page

Published 16 January 2015

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