26.12 PROPOSED AMENDMENT FOR PRIVATE COMPANY THAT MAY BE REGULATED
Revised Triggers for Private Company Takeover Regulation see S 118.
There will be a new trigger for private companies under the takeover regulations. This amendment will replace the current trigger (if a company has in the previous 24 months had a transfer of 10% or more of its securities other than between related or interrelated parties).
Instead, private companies will be caught by the takeover regulations if they:
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have 10 or more shareholders with a direct or indirect shareholding in the company; and
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meet or exceed the financial threshold of annual turnover or asset value to be determined by the Minister in general or about specific industries. This threshold has not yet been provided.
The result of this amendment is that companies not previously caught by these additional requirements, when implementing affected transactions (ie a sale of all or a greater part of the assets or undertakings of a company; a merger; a scheme; a change in beneficial shareholding in increments of 5%; mandatory offers or squeeze outs; etc), will have to comply with or obtain exemptions from compliance with the takeover regulations.