Commentary

D6.406 Takeover or merger under a scheme of arrangement

Corporate tax
Corporate tax | Commentary

D6.406 Takeover or merger under a scheme of arrangement

Corporate tax | Commentary

D6.406 Takeover or merger under a scheme of arrangement

A takeover or merger can be effected under a scheme of arrangement (D6.426) using a transfer scheme. This is where the shares in the target company are transferred to the bidder in consideration for the issue of shares or loan notes and/or the payment of cash by the bidder to the target shareholders.

Prior to 4 March 2015, it was also possible to effect a takeover/merger via a cancellation scheme. Under such arrangements, the shares in the target company were cancelled and the reserve created on that cancellation applied to pay up new shares which

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