STATUTORYINSTRUMENTS

2011No.0000

COMPANIES

TheCompanies(ReportingRequirementsinMergersandDivisions)Regulations2011

Made----***

LaidbeforeParliament***

Comingintoforce--July2011

TheSecretaryofStateisaMinisterdesignatedforthepurposesofsection2(2)oftheEuropeanCommunitiesAct1972([a])inrelationtothecreation,operation,regulationordissolutionofcompaniesandotherformsofbusinessorganisation([b]).

Inexerciseofthepowersconferredbysection2(2)ofthatAct,theSecretaryofStatemakesthefollowingRegulations.

PART1

INTRODUCTORY

Citationandcommencement

  1. —(1)TheseRegulationsmaybecitedastheCompanies(ReportingRequirementsinMergersandDivisions)Regulations2011.

(2)Theycomeintoforceon[—]July2011.

(3)TheCompaniesAct2006([c])isamendedassetoutinParts2and3oftheseRegulations;andaccordinglyanyreferenceinthosePartstoanumberedsectionistothatsectionofthatAct.

PART2

AMENDMENTSOFPART17OFTHECOMPANIESACT2006

Publiccompany:valuationofnon-cashconsiderationforshares:exceptions

  1. —(1)Section595(exceptiontovaluationrequirement:merger)isamendedasfollows.

(2)Insubsection(1),for “inconnectionwithaproposedmergerwithanothercompany”substitute“aspartofaschemetowhichPart27(mergersanddivisionsofpubliccompanies)appliesif—

(a)inthecaseofaschemeinvolvingamerger,anexpert’sreportisdrawnupasrequiredbysection909,or

(b)inthecaseofaschemeinvolvingadivision,anexpert’sreportisdrawnupasrequiredbysection924. .

(3)Omitsubsections(2)and(3).

(4)Inthefollowingplaces,after“merger”add“ordivision”—

(a)theheadingtosection595,and

(b)thereferencetothatsectioninsection593(4).

PART3

AMENDMENTSOFPART27OFTHECOMPANIESACT2006

RelationshipofPart27toPart26

  1. Insection903(relationshipofPart27toPart26),insubsection(2),for“918”substitute“918A”.

Publicationofdraftterms(merger)

  1. —(1)Insection906(publicationofdraftterms(merger)),aftersubsection(3)insert—

(4)Therequirementsinthissectionaresubjecttosection906A(publicationofdrafttermsoncompanywebsite). .

(2)Intheheadingtothatsection,after“draftterms”insert“byregistrar”.

  1. Aftersection906insert—

906APublicationofdrafttermsoncompanywebsite(merger)

(1)Section906doesnotapplyinrespectofacompanyiftheconditionsinsubsections(2)to(6)aremet.

(2)Thefirstconditionisthatthedrafttermsaremadeavailableonawebsitewhich—

(a)ismaintainedbyoronbehalfofthecompany,and

(b)identifiesthecompany.

(3)Thesecondconditionisthatneitheraccesstothedrafttermsonthewebsitenorthesupplyofahardcopyofthemfromthewebsiteisconditionalonpaymentofafeeorotherwiserestricted.

(4)Thethirdconditionisthatthedirectorsofthecompanydelivertotheregistraranoticegivingdetailsofthewebsite.

(5)ThefourthconditionisthattheregistrarpublishesthenoticeintheGazetteatleastonemonthbeforethedateofanymeetingofthecompanysummonedforthepurposeofapprovingthescheme.

(6)Thefifthconditionisthatthedrafttermsremainavailableonthewebsitethroughouttheperiodofonemonthendingwiththedateofanysuchmeeting. .

Directors’explanatoryreport(merger)

  1. Insection908(directors’explanatoryreport(merger)),attheendofsubsection(3)add“,section915A(othercircumstancesinwhichreportsandinspectionnotrequired)andsection918A(agreementtodispensewithreportsetc)”.

Expert’sreport(merger)

  1. Insection909(7)(expert’sreport),after“section915(circumstancesinwhichreportsnotrequired)”insert“,section915A(othercircumstancesinwhichreportsandinspectionnotrequired)”.

Supplementaryaccountingstatement(merger)

  1. —(1)Section910(supplementaryaccountingstatement(merger))isamendedasfollows.

(2)Forsubsection(1)substitute—

(1)Thissectionappliesif—

(a)thelastannualaccountsofanyofthemergingcompaniesrelatetoafinancialyearendingbeforethedatesevenmonthsbeforethefirstmeetingofthecompanysummonedforthepurposesofapprovingthescheme,and

(b)thatcompanyhasnotmadepublicahalf-yearlyfinancialreportrelatingtoaperiodendingonorafterthatdate.

(1A)Thedirectorsofthatcompanymustprepareasupplementaryaccountingstatement. .

(3)Aftersubsection(4)insert—

(5)Inthissection“half-yearlyfinancialreport”meansareportofthatdescriptionrequiredtobemadepublicbyrulesundersection89AoftheFinancialServicesandMarketsAct2000(transparencyrules).

(6)Therequirementinthissectionissubjecttosection915A(othercircumstancesinwhichreportsandinspectionnotrequired)andsection918A(agreementtodispensewithreportsetc). .

Inspectionofdocuments(merger)

  1. —(1)Section911(inspectionofdocuments(merger))isamendedasfollows.

(2)Insubsection(3),omit“and”attheendofparagraph(d)andafterparagraph(e)insert;and

(f)ifnostatementisrequiredbysection910becausethecompanyhasmadepublicarecenthalf-yearlyfinancialreport(seesubsection(1)(b)ofthatsection),thatreport. .

(3)Aftersubsection(3)insert—

(3A)Therequirementinsubsection(1)(a)issubjecttosection911A(1)(publicationofdocumentsoncompanywebsite). .

(4)Attheendofsubsection(4)add“andsection918A(agreementtodispensewithreportsetc)”.

(5)Attheendinsert—

(5)Section1150(righttohardcopy)doesnotapplytoadocumentsentorsuppliedinaccordancewithsubsection(1)(b)toamemberwhohasconsentedtoinformationbeingsentorsuppliedbythecompanybyelectronicmeans[andhasnotrevokedthatconsent].

(6)Part4ofSchedule5(communicationsbymeansofawebsite)doesnotapplyforthepurposesofsubsection(1)(b)(butseesection911A(5)).

(7)Therequirementsinthissectionaresubjecttosection915A(othercircumstancesinwhichreportsandinspectionnotrequired). .

  1. Aftersection911insert—

911APublicationofdocumentsoncompanywebsite(merger)

(1)Section911(1)(a)doesnotapplytoadocumentiftheconditionsinsubsections(2)to(4)aremetinrelationtothatdocument.

Thisissubjecttosubsection(6).

(2)Thefirstconditionisthatthedocumentismadeavailableonawebsitewhich—

(a)ismaintainedbyoronbehalfofthecompany,and

(b)identifiesthecompany.

(3)Thesecondconditionisthataccesstothedocumentonthewebsiteisnotconditionalonpaymentofafeeorotherwiserestricted.

(4)Thethirdconditionisthatthedocumentremainsavailableonthewebsitethroughouttheperiodofonemonthendingwiththedateofanymeetingofthecompanysummonedforthepurposeofapprovingthescheme.

(5)Apersonisabletoobtainacopyofadocumentasrequiredbysection911(1)(b)if—

(a)theconditionsinsubsections(2)and(3)aremetinrelationtothatdocument,and

(b)thepersonisable,throughouttheperiodspecifiedinsubsection(4),toobtainahardcopyofthedocumentfromthewebsite.

(6)Wheremembersofacompanyareabletoobtaincopiesofadocumentonlyfromawebsiteasmentionedinsubsection(5),section911(1)(a)appliestothatdocumenteveniftheconditionsinsubsections(2)to(4)aremet. .

Reportonmaterialchangesofassetsetc(merger)

  1. Aftersection911A(insertedbyRegulation10)insert—

911BReportonmaterialchangesofassetsofmergingcompanies

(1)Thedirectorsofeachofthemergingcompaniesmustreport—

(a)toeverymeetingofthemembers,oranyclassofmembers,ofthatcompanysummonedforthepurposeofagreeingtothescheme,and

(b)tothedirectorsofeveryothermergingcompany,

anymaterialchangesinthepropertyandliabilitiesofthatcompanybetweenthedatewhenthedrafttermswereadoptedandthedateofthemeetinginquestion.

(2)Thedirectorsofeachoftheothermergingcompaniesmustinturn—

(a)reportthosematterstoeverymeetingofthemembers,oranyclassofmembers,ofthatcompanysummonedforthepurposeofagreeingtothescheme,or

(b)sendareportofthosematterstoeverymemberentitledtoreceivenoticeofsuchameeting.

(3)Therequirementinthissectionissubjecttosection915A(othercircumstancesinwhichreportsandinspectionnotrequired)andsection918A(agreementtodispensewithreportsetc). .

Reportsandinspectionnotrequiredifminorityshareholdershaverighttosellout(merger)

  1. Aftersection915insert—

915AOthercircumstancesinwhichreportsandinspectionnotrequired(merger)

(1)Thissectionappliesinthecaseofamergerbyabsorptionwhere90%ormore(butnotall)oftherelevantsecuritiesofthetransferorcompany(or,ifthereismorethanonetransferorcompany,ofeachofthem)areheldbyoronbehalfofthetransfereecompany.

(2)Iftheconditionsinsubsections(3)and(4)aremet,therequirementsofthefollowingsectionsdonotapply—

(a)section908(directors’explanatoryreport),

(b)section909(expert’sreport),

(c)section910(supplementaryaccountingstatement),

(d)section911(inspectionofdocuments),and

(e)section911B(reportonmaterialchangesofassetsofmergingcompany).

(3)Thefirstconditionisthattheschemeprovidesthateveryotherholderofrelevantsecuritieshastherighttorequirethetransfereecompanytoacquirethosesecurities.

(4)Thesecondconditionisthat,ifaholderofsecuritiesexercisesthatright,theconsiderationtobegivenforthosesecuritiesisfairandreasonable.

(5)Thepowersofthecourtundersection900(2)(powertofacilitatereconstructionoramalgamation)includethepowertodetermine,ormakeprovisionforthedeterminationof,theconsiderationtobegivenforsecuritiesacquiredunderthissection.

(6)Inthissection—

“otherholder”meansapersonwhoholdssecuritiesofthetransferorcompanyotherwisethanonbehalfofthetransfereecompany(anddoesnotincludethetransfereecompanyitself);

“relevantsecurities”,inrelationtoacompany,meanssharesorothersecuritiescarryingtherighttovoteatgeneralmeetingsofthecompany.”.

Circumstancesinwhichmeetingofmembersoftransfereecompanynotrequired(merger)

  1. —(1))Section916(circumstancesinwhichmeetingofmembersoftransfereecompanynotrequired(merger))isamendedasfollows.

(2)Forsubsection(3)substitute—

(3)Thefirstconditionisthateithersubsection(3A)orsubsection(3B)issatisfied.

(3A)Thissubsectionissatisfiedifpublicationofnoticeofreceiptofthedrafttermsbytheregistrartookplaceinrespectofthetransfereecompanyatleastonemonthbeforethedateofthefirstmeetingofmembers,oranyclassofmembers,ofthetransferorcompanysummonedforthepurposeofagreeingtothescheme.

(3B)Thissubsectionissatisfiedif,inacasewheretheconditionsinsection906Aaremetinrespectofthetransfereecompany—

(a)publicationofthenoticementionedinsubsection(4)ofthatsectiontookplaceatleastonemonthbeforethedateofthefirstmeetingofmembers,oranyclassofmembers,ofthetransferorcompanysummonedforthepurposeofagreeingtothescheme,and

(b)thedrafttermsremainedavailableonthewebsitethroughouttheperiodofonemonthendingwiththatdate. .

(3)Forsubsection(4)substitute—

(4)Thesecondconditionisthatsubsections(4A)and(4B)aresatisfiedforthedocumentslistedintheapplicableparagraphsofsection911(3)(a)to(e)relatingtothetransfereecompanyandthetransferorcompany(or,ifthereismorethanonetransferorcompany,eachofthem).

(4A)Thissubsectionissatisfiedforadocumentif—

(a)themembersofthetransfereecompanywereableduringtheperiodbeginningonemonthbefore,andendingon,thedatementionedinsubsection(3)toinspectthatdocumentattheregisteredofficeofthatcompany,or

(b)theconditionsinsection911A(2)to(4)havebeenmetinrelationthatdocument.

(4B)Thissubsectionissatisfiedforadocumentifthemembersofthetransfereecompanywereableduringtheperiodbeginningonemonthbefore,andendingon,thatdatetoobtaincopiesofthatdocumentoranypartofitonrequestfreeofcharge.

(4C)Forthepurposesofsubsection(4B)—

(a)section911A(5)appliesasitappliesforthepurposesofsection911(1)(b),and

(b)Part4ofSchedule5(communicationsbymeansofawebsite)doesnotapply. .

Circumstancesinwhichnomeetingsrequired(merger)

  1. —(1)Section917(circumstancesinwhichnomeetingsrequired(merger))isamendedasfollows.

(2)Forsubsection(3)substitute—

(3)Thefirstconditionisthateithersubsection(3A)orsubsection(3B)issatisfied.

(3A)Thissubsectionissatisfiedifpublicationofnoticeofreceiptofthedrafttermsbytheregistrartookplaceinrespectofallthemergingcompaniesatleastonemonthbeforethedateofthecourt’sorder.

(3B)Thissubsectionissatisfiedif,inacasewheretheconditionsinsection906Aaremetinrespectofeachofthemergingcompanies—

(a)publicationofthenoticementionedinsubsection(4)ofthatsectiontookplaceatleastonemonthbeforethedateofthecourt’sorder,and

(b)thedrafttermsremainedavailableonthewebsitethroughouttheperiodofonemonthendingwiththatdate. .

(3)Forsubsection(4)substitute—

(4)Thesecondconditionisthatsubsections(4A)and(4B)aresatisfiedforthedocumentslistedintheapplicableparagraphsofsection911(3)(a)to(e)relatingtothetransfereecompanyandthetransferorcompany(or,ifthereismorethanonetransferorcompany,eachofthem).

(4A)Thissubsectionissatisfiedforadocumentif—

(a)themembersofthetransfereecompanywereableduringtheperiodbeginningonemonthbefore,andendingon,thedatementionedinsubsection(3)toinspectthatdocumentattheregisteredofficeofthatcompany,or

(b)theconditionsinsection911A(2)to(4)havebeenmetinrelationthatdocument.

(4B)Thissubsectionissatisfiedforadocumentifthemembersofthetransfereecompanywereableduringtheperiodbeginningonemonthbefore,andendingon,thatdatetoobtaincopiesofthatdocumentoranypartofitonrequestfreeofcharge.

(4C)Forthepurposesofsubsection(4B)—

(a)section911A(5)appliesasitappliesforthepurposesofsection911(1)(b),and

(b)Part4ofSchedule5(communicationsbymeansofawebsite)doesnotapply. .

Othercircumstancesinwhichmeetingofmembersoftransfereecompanynotrequired(merger)

  1. —(1)Section918(othercircumstancesinwhichmeetingofmembersoftransfereecompanynotrequired(merger))isamendedasfollows.

(2)Forsubsection(2)substitute—

(2)Thefirstconditionisthateithersubsection(2A)orsubsection(2B)issatisfied.

(2A)Thissubsectionissatisfiedifpublicationofnoticeofreceiptofthedrafttermsbytheregistrartookplaceinrespectofthetransfereecompanyatleastonemonthbeforethedateofthefirstmeetingofmembers,oranyclassofmembers,ofthetransferorcompany(or,ifthereismorethanonetransferorcompany,anyofthem)summonedforthepurposesofagreeingtothescheme.

(2B)Thissubsectionissatisfiedif,inacasewheretheconditionsinsection906Aaremetinrespectofthetransfereecompany—

(a)publicationofthenoticementionedinsubsection(4)ofthatsectiontookplaceatleastonemonthbeforethedateofthefirstmeetingofmembers,oranyclassofmembers,ofthetransferorcompany(or,ifthereismorethanonetransferorcompany,anyofthem)summonedforthepurposesofagreeingtothescheme,and

(b)thedrafttermsremainedavailableonthewebsitethroughouttheperiodofonemonthendingwiththatdate. .

(3)Forsubsection(3)substitute—

(3)Thesecondconditionisthatsubsections(3A)and(3B)aresatisfiedforthedocumentslistedintheapplicableparagraphsofsection911(3)relatingtothetransfereecompanyandthetransferorcompany(or,ifthereismorethanonetransferorcompany,eachofthem).

(3A)Thissubsectionissatisfiedforadocumentif—

(a)themembersofthetransfereecompanywereableduringtheperiodbeginningonemonthbefore,andendingon,thedateofanysuchmeetingasismentionedinsubsection(2)toinspectthatdocumentattheregisteredofficeofthatcompany,or

(b)theconditionsinsection911A(2)to(4)havebeenmetinrelationthatdocument.

(3B)Thissubsectionissatisfiedforadocumentifthemembersofthetransfereecompanywereableduringtheperiodbeginningonemonthbefore,andendingon,thedateofanysuchmeetingtoobtaincopiesofthatdocumentoranypartofitonrequestfreeofcharge.

(3C)Forthepurposesofsubsection(3B)—

(a)Section911A(5)appliesasitappliesforthepurposesofsection911(1)(b),and

(b)Part4ofSchedule5(communicationsbymeansofawebsite)doesnotapply. .

Agreementtodispensewithreport(merger)

  1. —(1)Section918A(agreementtodispensewithexpert’sreport(merger))isamendedasfollows.

(2)Insubsection(1)—

(a)for“thecompaniesinvolvedinthemerger”substitute“themergingcompanies”;

(b)for“therequirementofsection909(expert’sreport)doesnotapply”substitute“thefollowingrequirementsdonotapply”.

(3)Aftersubsection(1)insert—

(1A)Therequirementsthatmaybedispensedwithunderthissectionare—

(a)therequirementsof—

(i)section908(directors’explanatoryreport),

(ii)section909(expert’sreport),

(iii)section910(supplementaryaccountingstatement),and

(iv)section911B(reportonmaterialchangesofassetsofmergingcompany);and

(b)therequirementsofsection911(inspectionofdocuments)sofarasrelatingtoanydocumentrequiredtobedrawnupundertheprovisionsmentionedinparagraph(a)(i),(ii)or(iii)above. .

(4)Inthesectionheading,for“expert’sreport”substitute“reportsetc”.

Publicationofdraftterms(division)

  1. —(1)Insection921(publicationofdraftterms(division)),insubsection(4),after“subjectto”insert“section921A(publicationofdrafttermsoncompanywebsite)and”.

(2)Intheheadingtothatsection,after“draftterms”insert“byregistrar”.

  1. Aftersection921insert—

921APublicationofdrafttermsoncompanywebsite(division)

(1)Section921doesnotapplyinrespectofacompanyiftheconditionsinsubsections(2)to(6)aremet.

(2)Thefirstconditionisthatthedrafttermsaremadeavailableonawebsitewhich—

(a)ismaintainedbyoronbehalfofthecompany,and

(b)identifiesthecompany.

(3)Thesecondconditionisthatneitheraccesstothedrafttermsonthewebsitenorthesupplyofahardcopyofthemfromthewebsiteisconditionalonpaymentofafeeorotherwiserestricted.

(4)Thethirdconditionisthatthedirectorsofthecompanydelivertotheregistraranoticegivingdetailsofthewebsite.

(5)ThefourthconditionisthattheregistrarpublishesthenoticeintheGazetteatleastonemonthbeforethedateofanymeetingofthecompanysummonedforthepurposeofapprovingthescheme.

(6)Thefifthconditionisthatthedrafttermsremainavailableonthewebsitethroughouttheperiodofonemonthendingwiththedateofanysuchmeeting. .

Directors’explanatoryreport(division)

  1. Insection923(4)(director’sexplanatoryreport)after“section933(agreementtodispensewithreportsetc)”insert“andsection933A(certainrequirementsexcludedwhereshareholdersgivenproportionalrights)”.

Expert’sreport(division)

  1. Insection924(7)(expert’sreport)after“section933(agreementtodispensewithreportsetc)”insert“andsection933A(certainrequirementsexcludedwhereshareholdersgivenproportionalrights)”.

Supplementaryaccountingstatement(division)

  1. —(1)Section925(supplementaryaccountingstatement(division))isamendedasfollows.

(2)Forsubsection(1)substitute—

(1)Thissectionappliesif—

(a)thelastannualaccountsofacompanyinvolvedinthedivisionrelatetoafinancialyearendingbeforethedatesevenmonthsbeforethefirstmeetingofthecompanysummonedforthepurposesofapprovingthescheme,and

(b)thatcompanyhasnotmadepublicahalf-yearlyfinancialreportrelatingtoaperiodendingonorafterthatdate.

(1A)Thedirectorsofthatcompanymustprepareasupplementaryaccountingstatement. .

(3)Aftersubsection(4)insert—

(4A)Inthissection“half-yearlyfinancialreport”meansareportofthatdescriptionrequiredtobemadepublicbyrulesundersection89AoftheFinancialServicesandMarketsAct2000(transparencyrules). .

(4)Insubsection(5),after“section933(agreementtodispensewithreportsetc)”insert“andsection933A(certainrequirementsexcludedwhereshareholdersgivenproportionalrights)”.

Inspectionofdocuments(division)

  1. —(1)Section926(inspectionofdocuments(division))isamendedasfollows.

(2)Insubsection(3),omit“and”attheendofparagraph(d)andafterparagraph(e)insert“;and

(f)ifnostatementisrequiredbysection925becausethecompanyhasmadepublicarecenthalf-yearlyfinancialreport(seesubsection(1)(b)ofthatsection),thatreport. .

(3)Aftersubsection(3)insert—

(3A)Therequirementinsubsection(1)(a)issubjecttosection926A(1)(publicationofdocumentsoncompanywebsite). .

(4)Insubsection(4),after“section933(agreementtodispensewithreportsetc)”insert“,section933A(certainrequirementsexcludedwhereshareholdersgivenproportionalrights)”.

(5)Attheendinsert—

(5)Section1150(righttohardcopy)doesnotapplytoadocumentsentorsuppliedinaccordancewithsubsection(1)(b)toamemberwhohasconsentedtoinformationbeingsentorsuppliedbythecompanybyelectronicmeans[andhasnotrevokedthatconsent].

(6)Part4ofSchedule5(communicationsbymeansofawebsite)doesnotapplyforthepurposesofsubsection(1)(b)(butseesection926A(5)). .

  1. Aftersection926insert—

926APublicationofdocumentsoncompanywebsite(division)

(1)Section926(1)(a)doesnotapplytoadocumentiftheconditionsinsubsections(2)to(4)aremetinrelationtothatdocument.

Thisissubjecttosubsection(6).

(2)Thefirstconditionisthatthedocumentismadeavailableonawebsitewhich—

(a)ismaintainedbyoronbehalfofthecompany,and

(b)identifiesthecompany.

(3)Thesecondconditionisthataccesstothedocumentonthewebsiteisnotconditionalonpaymentofafeeorotherwiserestricted.

(4)Thethirdconditionisthatthedocumentremainsavailableonthewebsitethroughouttheperiodofonemonthendingwiththedateofanymeetingofthecompanysummonedforthepurposeofapprovingthescheme.

(5)Apersonisabletoobtainacopyofadocumentasrequiredbysection926(1)(b)if—

(a)theconditionsinsubsections(2)and(3)aremetinrelationtothatdocument,and

(b)thepersonisable,throughouttheperiodspecifiedinsubsection(4),toobtainahardcopyofthedocumentfromthewebsite.

(6)Wheremembersofacompanyareabletoobtaincopiesofadocumentonlyfromawebsiteasmentionedinsubsection(5),section926(1)(a)appliestothatdocumenteveniftheconditionsinsubsections(2)to(4)aremet. .

Reportonmaterialchangesofassetsoftransferorcompany(division)

  1. Insection927(3)(reportonmaterialchangesofassetsoftransferorcompany),after“section933(agreementtodispensewithreportsetc)”insert“andsection933A(certainrequirementsexcludedwhereshareholdersgivenproportionalrights)”.

Circumstancesinwhichmeetingofmembersoftransferorcompanynotrequired(division)

  1. —(1)Section931(circumstancesinwhichmeetingofmembersoftransferorcompanynotrequired(division))isamendedasfollows.

(2)Forsubsection(3)substitute—

(3A)Thefirstconditionisthateithersubsection(3A)orsubsection(3B)issatisfied.

(3A)Thissubsectionissatisfiedifpublicationofnoticeofreceiptofthedrafttermsbytheregistrartookplaceinrespectofallthecompaniesinvolvedinthedivisionatleastonemonthbeforethedateofthecourt’sorder.

(3B)Thissubsectionissatisfiedif,inacasewheretheconditionsinsection921Aaremetinrespectofeachofthecompaniesinvolvedinthedivision—

(a)publicationofthenoticementionedinsubsection(4)ofthatsectiontookplaceatleastonemonthbeforethedateofthecourt’sorder,and

(b)thedrafttermsremainedavailableonthewebsitethroughouttheperiodofonemonthendingwiththatdate. .

(3)Forsubsection(4)substitute—

(4)Thesecondconditionisthatsubsections(4A)and(4B)aresatisfiedforthedocumentslistedintheapplicableparagraphsofsection926(3)relatingtoeverycompanyinvolvedinthedivision.

(4A)Thissubsectionissatisfiedforadocumentif—

(a)themembersofeverycompanyinvolvedinthedivisionwereableduringtheperiodbeginningonemonthbefore,andendingon,thedatementionedinsubsection(3)toinspectthatdocumentattheregisteredofficeoftheircompany,or

(b)theconditionsinsection926A(2)to(4)havebeenmetinrelationthatdocument.

(4B)Thissubsectionissatisfiedforadocumentifthemembersofeverycompanyinvolvedinthedivisionwereableduringtheperiodbeginningonemonthbefore,andendingon,thatdatetoobtaincopiesofthatdocumentoranypartofitonrequestfreeofcharge.

(4C)Forthepurposesofsubsection(4B)—

(a)section926A(5)appliesasitappliesforthepurposesofsection926(1)(b),and

(b)Part4ofSchedule5(communicationsbymeansofawebsite)doesnotapply. .

(4)Omitsubsection(5)(thethirdcondition).

(5)Insubsection(6),for“fourth”substitute“third”.

Circumstancesinwhichmeetingofmembersoftransfereecompanynotrequired(division)

  1. —(1)Section932(circumstancesinwhichmeetingofmembersoftransfereecompanynotrequired(division))isamendedasfollows.

(2)Forsubsection(2)substitute—

(2)Thefirstconditionisthateithersubsection(2A)orsubsection(2B)issatisfied.

(2A)Thissubsectionissatisfiedifpublicationofnoticeofreceiptofthedrafttermsbytheregistrartookplaceinrespectofthetransfereecompanyatleastonemonthbeforethedateofthefirstmeetingofmembersofthetransferorcompanysummonedforthepurposesofagreeingtothescheme.

(2B)Thissubsectionissatisfiedif,inacasewheretheconditionsinsection921Aaremetinrespectofthetransfereecompany—

(a)publicationofthenoticementionedinsubsection(4)ofthatsectiontookplaceatleastonemonthbeforethedateofthefirstmeetingofmembersofthetransferorcompanysummonedforthepurposesofagreeingtothescheme,and

(b)thedrafttermsremainedavailableonthewebsitethroughouttheperiodofonemonthendingwiththatdate. .

(3)Forsubsection(3)substitute—

(3)Thesecondconditionisthatsubsections(3A)and(3B)aresatisfiedforthedocumentslistedintheapplicableparagraphsofsection926(3)relatingtothetransfereecompanyandeveryothercompanyinvolvedinthedivision.

(3A)Thissubsectionissatisfiedforadocumentif—

(a)themembersofthetransfereecompanywereableduringtheperiodbeginningonemonthbefore,andendingon,thedateofthemeetingmentionedinsubsection(2)toinspectthatdocumentattheregisteredofficeofthatcompany,or

(b)theconditionsinsection926A(2)to(4)havebeenmetinrelationthatdocument.

(3B)Thissubsectionissatisfiedforadocumentifthemembersofthetransfereecompanywereableduringtheperiodbeginningonemonthbefore,andendingon,thatdatetoobtaincopiesofthatdocumentoranypartofitonrequestfreeofcharge.

(3C)Forthepurposesofsubsection(3B)—

(a)section926A(5)appliesasitappliesforthepurposesofsection926(1)(b),andPart4ofSchedule5(communicationsbymeansofawebsite)doesnotapply. .

Certainrequirementsexcludedwhereshareholdersgivenproportionalrights(division)

  1. —(1)Aftersection933insert—

933ACertainrequirementsexcludedwhereshareholdersgivenproportionalrights(division).

(1)Thissectionappliesinthecaseofadivisionwhereeachofthetransfereecompaniesisanewcompany.

(2)Ifallthesharesineachofthetransfereecompaniesaretobeallottedtothemembersofthetransferorcompanyinproportiontotheirrightsintheallottedsharecapitalofthetransferorcompany,thefollowingrequirementsdonotapply.

(3)Therequirementswhichdonotapplyare—

(a)therequirementsof—

(i)section923(directors’explanatoryreport),

(ii)section924(expert’sreport),

(iii)section925(supplementaryaccountingstatement),and

(iv)section927(reportonmaterialchangesinassetsoftransferorcompany);and

(b)therequirementsofsection926(inspectionofdocuments)sofarasrelatingtoanydocumentrequiredtobedrawnupundertheprovisionsmentionedinparagraph(a)(i),(ii)or(iii)above. .

Disruptionofwebsites

  1. Aftersection940insert—

Disruptionofwebsites

940ADisregardofwebsitefailuresbeyondcontrolofcompany

(1)Afailuretomakeinformationoradocumentavailableonthewebsitethroughoutaperiodspecifiedinanyoftheprovisionsmentionedinsubsection(2)istobedisregardedif—

(a)itismadeavailableonthewebsiteforpartofthatperiod,and

(b)thefailuretomakeitavailablethroughoutthatperiodiswhollyattributabletocircumstancesthatitwouldnotbereasonabletohaveexpectedthecompanytopreventoravoid.

(2)Theprovisionsreferredtoaboveare¬—

(a)section906A(6),

(b)section911A(4),

(c)section916(3B),

(d)section917(3B),

(e)section918(2B),

(f)section921A(6),

(g)section926A(4),

(h)section931(3B),and

(i)section932(2B). .

PART4

AMENDMENTSOFCROSS-BORDERMERGERSREGULATIONS 2007

AmendmentofCross-BorderMergersRegulations 2007

  1. TheCompanies(Cross-BorderMergers)Regulations2007(S.I.2007/2974)areamendedasfollows.
  2. Inregulation6(courtapprovalofpre-mergerrequirements),afterparagraph(2)insert—

(3)Inacasefallingwithinregulation9A(circumstancesinwhichindependentexpert’sreportnotrequired),thecourtmaydetermine,ormakeprovisionforthedeterminationof,theconsiderationtobegivenforsecuritiesacquiredunderthatregulation. .

  1. Inregulation9(independentexpert’sreport),forparagraph(1)(b)substitute—

(4)theconditionsinregulation9Aaremet;or .

  1. Afterregulation9insert—

9ACircumstancesinwhichindependentexpert’sreportnotrequired

(1)Therequirementtodrawupareportinaccordancewithregulation9doesnotapplyiftheconditionsinparagraphs(2)to(4)aremet.

(2)Thefirstconditionisthatthecross-bordermergerisamergerbyabsorptionwhere90%ormore(butnotall)oftherelevantsecuritiesofthetransferorcompany(or,ifthereismorethanonetransferorcompany,ofeachofthem)areheldbyoronbehalfofthetransfereecompany.

(3)Thesecondconditionisthatthedrafttermsofmergerprovidethateveryotherholderofrelevantsecuritieshastherighttorequirethetransfereecompanytoacquirethosesecurities.

(4)Thethirdconditionisthat,ifaholderofsecuritiesexercisesthatright,theconsiderationtobegivenforthosesecuritiesisfairandreasonable.

(5)Inthisregulation—

“otherholder”meansapersonwhoholdssecuritiesofthetransferorcompanyotherwisethanonbehalfofthetransfereecompany(anddoesnotincludethetransfereecompanyitself);

“relevantsecurities”,inrelationtoacompany,meanssharesorothersecuritiescarryingtherighttovoteatgeneralmeetingsofthecompany. .

  1. Inregulation12(publicnoticeofreceiptofregistereddocuments),afterparagraph(6)insert—

(7)Therequirementsinparagraphs(1)to(4),sofarastheyrelatetothedrafttermsofthemerger,aresubjecttoregulation12A. .

  1. Afterregulation12insert—

12APublicationofdrafttermsofmergeroncompanywebsite

(1)Thefollowingrequirementsofregulation12donotapplywheretheconditionsinparagraphs(2)to(6)aremet—

(a)therequirementinparagraph(1)(b)(directorstodelivercopyofdrafttermsofmergertoregistrar),and

(b)therequirementinparagraph(3),sofarasitrelatestothedrafttermsofmerger(registrartopublishnoticeofreceiptintheGazetteetc).

(2)Thefirstconditionisthatthedrafttermsofmergeraremadeavailableonawebsitewhich—

(a)ismaintainedbyoronbehalfoftheUKmergingcompany,and

(b)identifiesthecompany.

(3)Thesecondconditionisthatneitheraccesstothedrafttermsofmergeronthewebsitenorthesupplyofahardcopyofthemfromthewebsiteisconditionalonpaymentofafeeorotherwiserestricted.

(4)Thethirdconditionisthatthedirectorsofthecompanydelivertotheregistraranoticegivingdetailsofthewebsite.

(5)ThefourthconditionisthattheregistrarpublishesthenoticeintheGazetteatleastonemonthbeforethedateofthefirstmeetingofthemembers,oranyclassofmembers,ofthecompany(seeregulation13).

(6)Thefifthconditionisthatthedrafttermsofmergerremainavailableonthewebsitethroughouttheperiodofonemonthendingwiththedateofanysuchmeeting.

(7)Afailuretomakethedrafttermsavailableonthewebsitethroughouttheperiodspecifiedinparagraph(6)istobedisregardedif—

(a)theyaremadeavailableonthewebsiteforpartofthatperiod,and

(b)thefailuretomakethemavailablethroughoutthatperiodiswhollyattributabletocircumstancesthatitwouldnotbereasonabletohaveexpectedthecompanytopreventoravoid. .

Transitionalprovisions

  1. [to be drafted]
  2. [to be drafted]

Consequentialamendments[to be drafted]

1

([a])1972 c.68.

([b])S.I. 2007/193.

([c])2006 c.46.