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

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

Ref: BIS/15/26

24 KB

Companies Act 2006: restricting share capital reductions in takeovers - information and impact note

Ref: BIS/15/27

158 KB

Details

The 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 ‘cancellation’ scheme of arrangement to facilitate its takeover or merger.

The 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.

Published 16 January 2015