25.9 REPORTING OR APPROVAL REQUIREMENTS
S 121 clearly and directly applies the takeover provisions of the Act to affected transactions and offers by providing that any person making an offer;
1. Must comply with all the reporting or approval requirements as set out in Part B and Part C of the Takeover Regulations (except to the extent that the panel has exempted them from any requirement); and
2. Must not give effect to an affected transaction unless the panel has issued a compliance certificate with respect to the transaction (or granted an exemption for the transaction).
The question that arises in this situation is what happens if a private company falls within the definition of a regulated company and does not make the necessary application to the TRP because of ignorance! What now! In terms of s 121 (b) any person making an offer or proposal cannot give effect to the transaction unless the TRP issues a compliance certificate or an exemption. There could be dire consequences if compliance has not taken place and parties wish to get out of their obligations. This area poses a grave potential risk for secretarial practitioners and company secretaries who do not advise companies correctly.