C1C2C3Part 27Mergers and divisions of public companies

Annotations:
Modifications etc. (not altering text)

Chapter 3Division

Other exceptions

932Circumstances in which meeting of members of transferee company not required (division)

1

In the case of a division, it is not necessary for the scheme to be approved by the members of a transferee company if the court is satisfied that the following conditions have been complied with in relation to that company.

F12

The first condition is that either subsection (2A) or subsection (2B) is satisfied.

2A

This subsection is satisfied if publication of notice of receipt of the draft terms by the registrar took place in respect of the transferee company at least one month before the date of the first meeting of members of the transferor company summoned for the purposes of agreeing to the scheme.

2B

This subsection is satisfied if—

a

the conditions in section 921A(2) to (4) are met in respect of the transferee company,

b

the registrar published the notice mentioned in subsection (4) of that section in the Gazette at least one month before the date of the first meeting of members of the transferor company summoned for the purposes of agreeing to the scheme, and

c

the draft terms remained available on the website throughout the period beginning one month before, and ending on, that date.

F23

The second condition is that subsection (3A) or (3B) is satisfied for each of the documents listed in the applicable paragraphs of section 926(3) relating to the transferee company and every other company involved in the division.

3A

 This subsection is satisfied for a document if the members of the transferee company were able during the period beginning one month before, and ending on, the date mentioned in subsection (2A) to inspect that document at the registered office of that company.

3B

 This subsection is satisfied for a document if—

a

the document is made available on a website which is maintained by or on behalf of the transferee company and identifies the company,

b

access to the document on the website is not conditional on payment of a fee or otherwise restricted, and

c

the document remains available on the website throughout the period beginning one month before, and ending on, the date mentioned in subsection (2A).

3C

 The third condition is that the members of the transferee company were able to obtain copies of the documents mentioned in subsection (3), or any part of those documents, on request and free of charge, throughout the period beginning one month before, and ending on, the date mentioned in subsection (2A).

3D

For the purposes of subsection (3C)—

a

section 926A(5) applies as it applies for the purposes of section 926(1)(b), and

b

Part 4 of Schedule 5 (communications by means of a website) does not apply.

4

The F3fourth condition is that—

a

one or more members of that company, who together held not less than 5% of the paid-up capital of the company which carried the right to vote at general meetings of the company (excluding any shares in the company held as treasury shares) would have been able, during that period, to require a meeting of each class of members to be called for the purpose of deciding whether or not to agree to the scheme, and

b

no such requirement was made.

5

The F4first, second and third conditions above are subject to section 934 (power of court to exclude certain requirements).