n Without Prejudice - Waivers and "opting out" of takeover laws : company law
|Article Title||Waivers and "opting out" of takeover laws : company law|
|© Publisher:||JetBlue Publishers (Pty) Ltd|
|Publication Date||May 2014|
|Pages||17 - 18|
There is a practice, which recently came to the attention of the Takeover Regulation Panel, of private companies drafting provisions into their Memoranda of Incorporation (MOI) that purport to exempt the company from the application of the takeover laws in Parts B and C of Chapter 5 of the Companies Act (71 of 2008) and the regulations promulgated thereunder. Put another way, the MOI aims at "contracting out" of the takeover laws in circumstances when they would otherwise apply. The purpose of this article is to set out some concerns and considerations to be taken into account when determining the validity of such arrangements.
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