Commentary

108 Defined benefit schemes—establishing the level of funding

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

108 Defined benefit schemes—establishing the level of funding

| Commentary

108 Defined benefit schemes—establishing the level of funding

In the case of a target which is sponsoring a stand-alone defined benefit scheme, the buyer will want to be assured that the scheme has been run in accordance with the pensions legislation (and that no contributions remain unpaid). In this type of case, the warranties should also establish that no act or omission has occurred before the transfer which could involve the target company in any payment into the scheme (particularly under Section 75 of the Pensions Act 1995 and the moral hazard provisions of the Pensions Act 2004) or in

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