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A formal process that can implement a company reorganisation or transaction through specified approvals, often including a court.
The company presents terms and identifies the classes whose rights are affected. Meetings and voting requirements apply, and a court may consider whether statutory conditions and fairness requirements have been satisfied. The process can bind affected members of an approved class, including some who opposed the proposal, but the legal tests and effect must be checked against the particular law and order.
Imagine an acquisition proposed through a shareholder scheme. Investors receive documents explaining the consideration and vote at the required meeting. Even if the voting threshold is met, completion may still depend on court sanction and other conditions. If those steps are satisfied, shares can transfer under the scheme's terms. This hypothetical is not a statement of a universal voting threshold or deadline.
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