Bell Gully has responded to the Takeovers Panel's consultation paper "Schemes of Arrangement and Amalgamations Involving Code Companies", advising against the addition of further protections.
Bell Gully has expressed a view that the current reconstruction provisions of the Companies Act and the existence of schemes and amalgamations allow market participants access to an array of options and are able to match their individual situations with the most appropriate mechanism.
It is Bell Gully's view that schemes have been beneficial to companies and shareholders in New Zealand and that adding further protections, as suggested, could make it practically impossible for certain reconstructions to take place or put them at risk of being hijacked by small minorities with disproportionately large powers of veto.
It is Bell Gully's view that by maintaining the flexibility of the current regime the competitiveness of New Zealand's capital markets internationally will be protected. Therefore, the submission expresses a strong preference for the continued availability of the reconstruction options in their current form.
To read the submission, click here.
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