Pension issues in share sales—where target has DC pension arrangements in place
Pension issues in share sales—where target has DC pension arrangements in place

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Pension issues in share sales—where target has DC pension arrangements in place
  • Where target is the sole employer of a DC occupational pension scheme
  • Cost considerations
  • Paternalism
  • Composition of the trustee board post-completion
  • Due diligence issues
  • Where target is the principal employer of a multi-employer DC occupational pension scheme
  • What happens to the scheme's other participating employers?
  • Other issues
  • Where target is a participating employer in a multi-employer DC occupational pension scheme
  • More...

THIS PRACTICE NOTE APPLIES IN RELATION TO DEFINED CONTRIBUTION OCCUPATIONAL PENSION SCHEMES

This Practice Note focuses on the issues which a buyer and seller must consider, in the context of a share sale, where the target company, or one of its subsidiaries:

  1. is the sole employer of a defined contribution (DC) occupational pension scheme

  2. is the principal employer of a multi-employer DC occupational pension scheme

  3. is a participating employer (but not the principal employer) in a multi-employer DC occupational pension scheme

  4. has personal pension arrangements in place

  5. is the principal employer of a small self-administered scheme (SSAS)

In this Practice Note, references to the target company include such a subsidiary.

This Practice Note should be read in combination with the following Practice Notes:

  1. Pension issues in share sales—an introduction, which focuses on the pensions issues generally applicable on share sales (regardless of the nature of the target company's pension arrangements)

  2. Pensions due diligence in share sales—an introduction, which provides an overview of the pensions aspects of the due diligence carried out by the buyer in a share sale, and

  3. Pensions due diligence in share sales—issues specific to DC schemes, which explains what due diligence issues buyers should look out for on a share sale where the target company has DC pension arrangements in place

This Practice Note raises complex issues. Corporate lawyers looking at this should

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