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Author	Glo the dogwoman View Profile \| Add to favourites \| Ignore
Date posted	2009-11-07 21:57
Subject	More bits on schemes of arrangement
Votes for this Posting	Voted 4 times. Not voted down.
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SO IT CAN BE BLOCKED BY A DETERMINED MINORITY. Less common means of consolidation are the takeover offer and the court-sanctioned scheme of arrangement. On a takeover offer, the offeror controls the process and it is easier to alter the terms of the offer, once it has been made, to combat any competing offer. On a scheme of arrangement, the scheme is the target company's, it usually controls the process and the scheme remains more vulnerable to a competing offer. A takeover offer can be declared unconditional once the offeror has received acceptances which take it over 50% of the voting rights. In contrast, a scheme requires approval by a majority in number representing 75% of the votes cast, and so it can be blocked by a determined minority. It should be possible to structure a scheme of arrangement so that no stamp duty is payable (through use of a cancellation scheme, as opposed to a transfer scheme) whereas stamp duty at the rate of 0.5% will be payable in respect of all shares acquired under a takeover offer http://www.investmentweek.co.uk/investment-week/feature/1379324/has-deflation-closed-investment-funds
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