The Government has revisited the problem of companies sidestepping the Takeovers Code by asking the Takeovers Panel to investigate a Companies Act loophole.
The panel had hoped to close the loophole last year through supplementary papers to the Business Law Reform Bill, but the move did notreceive the support of all political parties and failed.
Commerce Minister Lianne Dalziel said she had asked the Takeovers Panel to look at the issue of schemes of arrangements and amalgamations potentially being used in ways that might not align with the Takeovers Code, for example takeovers without the regulatory level of shareholder support.
She was confident the panel could tackle the problem under tighter regulations taking effect on April 1. "I have ... decided, therefore, to refer the matter back to the panel and asked this time that a regulatory impact statement be included in the report back to me."
