Commentary

16 Application to takeovers and company reorganisations

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

16 Application to takeovers and company reorganisations

| Commentary

16 Application to takeovers and company reorganisations

Sections 678 and 679 of the Companies Act 2006 are not limited to the provision of funds for the direct payment of the purchase price for the shares, but will extend to a much wider range of ‘assistance’ associated with the acquisition of shares. Arrangements which might cause difficulties in the context of an acquisition or reorganisation would include:

  1. 16.1

        the release or waiver by the target company of any debt owed to it;

  2. 16.2

        repayment of a loan granted to the target company on favourable terms before the repayment date1;

  3. 16.3

        the

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