Chapter 5 legal issues pertaining to MBAs
Introduction
a
These transactions are beneficial
to increase profitability but could harm consumers
other market players
The regulatory authorities in a country should protect rights of consumers
other market participants when MBAs by corporate restructuring occur
Parties in a MBA should take note of the following laws
1 The companies act
designed to promote accountability transparecy corporate efficiency regulatory
certainty
corporate governance
Act
liability
contains standards
provision
to regulate directors conduct 4 includes strict director
Act abolished the concepts of par h nominal values for shares
It introduced a solvency liquidity test
definitions
Regulated company
, offer
affected transaction
Main purpose regulation of affected transactions or
The takeover regulations offers involving regulated companies
The takeover regulation panel TRP was established to regulate offers by affected
transactions
The TRP
SYFY that
insuffney
shareholders
fairly
Requirements set out in the companies act takeover regulation relate to
various stages of the MBA process
Introduction
a
These transactions are beneficial
to increase profitability but could harm consumers
other market players
The regulatory authorities in a country should protect rights of consumers
other market participants when MBAs by corporate restructuring occur
Parties in a MBA should take note of the following laws
1 The companies act
designed to promote accountability transparecy corporate efficiency regulatory
certainty
corporate governance
Act
liability
contains standards
provision
to regulate directors conduct 4 includes strict director
Act abolished the concepts of par h nominal values for shares
It introduced a solvency liquidity test
definitions
Regulated company
, offer
affected transaction
Main purpose regulation of affected transactions or
The takeover regulations offers involving regulated companies
The takeover regulation panel TRP was established to regulate offers by affected
transactions
The TRP
SYFY that
insuffney
shareholders
fairly
Requirements set out in the companies act takeover regulation relate to
various stages of the MBA process
