Regulations prohibiting cancellation schemes of arrangement on takeovers now in force
Published on 9th Mar 2015
As we previously blogged about here, the Government has brought regulations into force, with effect from 4 March 2015, prohibiting the use of cancellation schemes of arrangement on takeovers. The policy behind the regulations is the equalisation of the stamp duty treatment of takeovers conducted by scheme and contractual offer.
The regulations, which are unchanged from the draft version published in January, contain transitional provisions to exempt takeovers for which an announcement concerning a firm intention to make an offer has been made (or, for transactions not subject to the Takeover Code, where the terms of the offer have been agreed (including the use of a scheme)) before the regulations came into force.
Source: The Companies Act 2006 (Amendment of Part 17) Regulations 2015
