110 Interim participation

The buyer may find it convenient for the target company to continue participating in the seller’s group defined benefit scheme for a short period after completion to enable the buyer to put alternative pension arrangements in place. (This will be particularly likely where contract and completion are simultaneous.) Even if the seller’s group scheme rules permit the target’s continued participation for an interim period such as this, neither the seller nor the seller’s scheme trustees are under any obligation to agree to it.

Indeed, the seller may be somewhat reluctant to accede to the buyer’s request. After all,

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