• PART 26 PART 26 MERGERS AND DIVISIONS

    • CHAPTER 1 CHAPTER 1 INTRODUCTORY

      • 808. Application of this Part

        (1) This Part applies where—
        (a) a compromise or arrangement is proposed between a company and—
        (i) its creditors or any class of them, or
        (ii) its members or any class of them,
        for the purposes of, or in connection with, a scheme for the reconstruction of any company or companies or the amalgamation of any two or more companies or any one or more companies and one or more bodies corporate,
        (b) the scheme involves—
        (i) a merger (as defined in section 810(1)), or
        (ii) a division (as defined in section 830).
        (2) In this Part, unless the context otherwise requires—
        (a) a "company" includes companies formed or registered under these Regulations and any non-ADGM company whose jurisdiction of incorporation permits such non-ADGM company: (i) to merge, in the case of a merger by absorption, into a single company or body corporate or, in the case of a merger by consolidation, into a new company (or to become such a new company), or (ii) to participate in a scheme involving a division under Chapter 3 of this Part,
        (b) an "existing company" means a company involved in a scheme to which this Part applies other than a new company, and
        (c) a "new company" means a company formed—
        (i) to be the surviving company for the purposes of a merger by consolidation (as defined in section 810(1)(b)), or
        (ii) as a new company (as mentioned in section 830(1)) for the purposes of, or in connection with, a scheme involving a division under Chapter 3 of this Part.
        (3) This Part does not apply where the company in respect of which the compromise or arrangement is proposed is being wound up.

      • 809. Relationship of this Part to Part 25

        (1) The Court must not sanction under Part 25 (arrangements and reconstructions) the compromise or arrangement which relates to the relevant merger or division under this Part 26 unless the relevant requirements of this Part have been complied with.
        (2) The relevant requirements applicable to a merger are specified in sections 810(2) and 811 to 823.

        Certain of those requirements, and certain general requirements of Part 25, are modified or excluded by the provisions of sections 824 to 829.
        (3) The relevant requirements applicable to a division are specified in sections 831 to 843.

        Certain of those requirements, and certain general requirements of Part 25, are modified or excluded by the provisions of sections 844 to 848.

    • CHAPTER 2 CHAPTER 2 MERGER

      • 810. Mergers and merging companies

        (1) The scheme involves a merger where under the scheme—
        (a) any two or more companies merge into a single company which is an existing company (a "merger by absorption"), or
        (b) any two or more companies amalgamate into a new company (a "merger by consolidation"),
        and at least one of the constituent companies participating in the merger is a company formed or incorporated under these Regulations.
        (2) Where one or more of the constituent companies participating in a merger is a non-ADGM company, a merger under this Part 26 shall not be approved unless:
        (a) the non-ADGM company has obtained all necessary authorisations, if any, required under the laws of the jurisdiction in which it is incorporated or is presently registered in order to consummate a merger under this Part 26 and filed with the Registrar documentary proof of such authorisation,
        (b) the jurisdiction in which the non-ADGM company is incorporated or is presently registered is:
        (i) an appointed jurisdiction, or
        (ii) approved by the Board, upon application by the non-ADGM company for the purpose of consummating a merger under this Part 26,
        (c) not more than three months prior to the effective date of the merger the non-ADGM company shall advertise in a national newspaper in the jurisdiction in which it is incorporated or presently registered its intention to consummate a merger under this Part 26, and
        (d) a statement of the solvency of the surviving company made in accordance with section 584 (solvency statement) shall have been made not more than 15 days before the beginning of the period specified in subsection (2)(c) and on the basis that the scheme as proposed has been sanctioned by the Court.
        (3) References in this Part to
        (a) "the constituent companies" is to both the merging companies and the surviving company,
        (b) "the merging companies" are—
        (i) in relation to a merger by absorption, to the companies participating in the merger by absorption,
        (ii) in relation to a merger by consolidation, to the companies other than the new company, and
        (c) "the surviving company" is to the merging company remaining following consummation of a merger by absorption or to the new company into which the merging companies amalgamate in a merger by consolidation.

      • 811. Draft terms of scheme (merger)

        (1) A draft of the proposed terms of the scheme must be drawn up and adopted by the directors or equivalent office holders of the merging companies.
        (2) The draft terms must give particulars of at least the following matters—
        (a) in respect of each constituent company—
        (i) its name, and
        (ii) the address of its registered office,
        (b) the cash, non-cash assets (including shares or other securities) in any body corporate which the holders of shares in the merging companies are to receive,
        (c) in the case of any non-cash asset mentioned in (b) above, the value to be attributed to such assets or, in the case of any consideration that comprises shares or other securities, the securities exchange ratio, for the purposes of the relevant merger,
        (d) the terms relating to the issue of shares, if any, in the surviving company,
        (e) any rights or restrictions attaching to shares or other securities in any body corporate to be issued under the scheme to the holders of shares or other securities in a merging company to which any special rights or restrictions attach, or the measures proposed concerning them,
        (f) any amount of benefit paid or given or intended to be paid or given—
        (i) to any of the experts referred to in section 816 (expert's report), or
        (ii) to any director of a constituent company,
        and the consideration for the payment of benefit.
        (3) The requirements in subsection (2)(b) to 2(e) are subject to section 824 (circumstances in which certain particulars not required).

      • 812. Publication of draft terms by Registrar (merger)

        (1) The directors or equivalent office holders of each of the merging companies must deliver a copy of the draft terms to the Registrar.
        (2) The Registrar must publish on the Registrar's website notice of receipt from that merging company of a copy of the draft terms.
        (3) That notice must be published at least one month before the date of any meeting of that merging company summoned for the purpose of approving the scheme.
        (4) The requirements in this section are subject to section 813 (publication of draft terms on merging company's website).

      • 813. Publication of draft terms on company website (merger)

        (1) Section 812(2) and 812(3) do not apply in respect of a merging company if the conditions in subsections (2) to (6) are met.
        (2) The first condition is that the draft terms are made available on a website which—
        (a) is maintained by or on behalf of the merging company, and
        (b) identifies the merging company.
        (3) The second condition is that neither access to the draft terms on the website nor the supply of a hard copy of them from the website is conditional on payment of a fee or otherwise restricted.
        (4) The third condition is that the directors or equivalent office holders of the merging company deliver to the Registrar a notice giving details of the website.
        (5) The fourth condition is that the Registrar or, in the case of a merging company that is a non-ADGM company, the merging company publishes the notice in on its website at least one month before the date of any meeting of the merging company summoned for the purpose of approving the scheme.
        (6) The fifth condition is that the draft terms remain available on the website throughout the period beginning one month before, and ending on, the date of any such meeting.

      • 814. Approval of members of merging companies

        (1) The scheme must be approved by members of each class of each of the merging companies representing 75% of the voting rights of the class of members, present and voting either in person or by proxy at a meeting.
        (2) This requirement is subject to sections 826, 827 and 828 (circumstances in which meetings of members not required).

      • 815. Directors' or equivalent office holders' explanatory report (merger)

        (1) The directors or equivalent office holders of each of the merging companies must draw up and adopt a report.
        (2) The report must consist of—
        (a) the statement required by section 803 (statement to be circulated or made available), and
        (b) insofar as that statement does not deal with the following matters, a further statement—
        (i) setting out the legal and economic grounds for the draft terms and, where the holders of shares in the merging companies are to receive shares or other securities in any body corporate, the number of shares or other securities to be issued ("the share exchange ratio"), and
        (ii) specifying any special valuation difficulties.
        (3) The requirement in this section is subject to section 824 (circumstances in which certain particulars and reports not required), section 825 (other circumstances in which reports and inspection not required) and section 829 (agreement to dispense with reports etc.).

      • 816. Expert's report (merger)

        (1) Where the holders of shares in the merging companies are offered consideration that includes a non-cash asset, an expert's report must be drawn up on behalf of each of the merging companies.
        (2) The report required is a written report on the draft terms to the members of the merging company.
        (3) The Court may on the joint application of all the merging companies approve the appointment of a joint expert to draw up a single report on behalf of all those merging companies.

        If no such appointment is made, there must be a separate expert's report to the members of each merging company drawn up by a separate expert appointed on behalf of that merging company.
        (4) The expert must be a person who—
        (a) is eligible for appointment as an auditor, and
        (b) meets the independence requirement in section 850.
        (5) The expert's report must—
        (a) indicate the method or methods used to value the non-cash asset or securities exchange ratio offered,
        (b) give an opinion as to whether the method or methods used are reasonable in all the circumstances of the case, indicate the values arrived at using each such method and (if there is more than one method) give an opinion on the relative importance attributed to such methods in arriving at the value decided on,
        (c) describe any special valuation difficulties that have arisen,
        (d) state whether in the expert's opinion the valuation of the non-cash asset or, as the case may be, securities exchange ratio, is reasonable, and
        (e) in the case of an expert valuation made by a person other than himself (see section 849), state that it appeared to him reasonable to arrange for it to be so made or to accept a valuation so made.
        (6) The expert (or each of them) has—
        (a) the right of access to all such documents of all the merging companies, and
        (b) the right to require from the merging companies' officers all such information,
        as he thinks necessary for the purposes of making his report.
        (7) The requirement in this section is subject to section 824 (circumstances in which certain particulars and reports not required), section 825 (other circumstances in which reports and inspection not required) and section 829 (agreement to dispense with expert's report)

      • 817. Supplementary accounting statement (merger)

        (1) this section applies if the last annual accounts of any of the merging companies relate to a financial year ending before—
        (a) the date seven months before the first meeting of the merging company summoned for the purposes of approving the scheme, or
        (b) if no meeting of the merging company is required (by virtue of any of sections 826 to 828), the date six months before the directors or equivalent office holders of the merging company adopt the draft terms of the scheme.
        (2) If the merging company has not made public a half-yearly financial report relating to a period ending on or after the date mentioned in subsection (1), the directors or equivalent office holders of the merging company must prepare a supplementary accounting statement.
        (3) That statement must consist of—
        (a) a balance sheet dealing with the state of affairs of the merging company as at a date not more than three months before the draft terms were adopted by the directors or equivalent office holders, and
        (b) where the merging company would be required under section 389 (duty to prepare group accounts) to prepare group accounts if that date were the last day of a financial year, a consolidated balance sheet dealing with the state of affairs of the merging company and the undertakings that would be included in such a consolidation.
        (4) The requirements of these Regulations as to the balance sheet forming part of a company's annual accounts, and the matters to be included in notes to it, apply to the balance sheet required for an accounting statement under this section, with such modifications:
        (a) as are necessary by reason of its being prepared otherwise than as at the last day of a financial year, and
        (b) in the case of a non-ADGM company, as may be prescribed in any rules made by the Board.
        (5) The provisions of section 399 (approval and signing of accounts) as to the approval and signing of accounts apply to the balance sheet required for an accounting statement of a company that is not a non-ADGM company under this section.
        (6) In this section—
        "annual accounts" has the meaning given to that term by section 444(1) (meaning of "annual accounts") in the case of a company formed or registered under these Regulations and, in the case of a non-ADGM company, has such meaning as may be prescribed by rules made by the Board for the purposes of this Part, and

        "half-yearly financial report" means a report of that description required to be made public by any rules or regulations applicable in the Abu Dhabi Global Market to listed companies or, in the case of a non-ADGM company, as may be prescribed by rules made by Board for the purposes of this Part.
        (7) The requirement in this section is subject to section 825 (other circumstances in which reports and inspection not required) and section 829 (agreement to dispense with reports etc).

      • 818. Inspection of documents (merger)

        (1) The members of each of the merging companies must be able, during the period specified below—
        (a) to inspect at the registered office or, in the case of a non-ADGM company, its equivalent or principal office, of that merging company copies of the documents listed below relating to that merging company and every other merging company, and
        (b) to obtain copies of those documents or any part of them on request free of charge.
        (2) The period referred to above is the period—
        (a) beginning one month before, and
        (b) ending on the date of,
        the first meeting of the members, or any class of members, of the merging company for the purposes of approving the scheme.
        (3) The documents referred to above are—
        (a) the draft terms,
        (b) the directors' or equivalent office holders' explanatory report,
        (c) any statement required by subsection 810(2)(d),
        (d) the expert's report,
        (e) the merging company's annual accounts and reports for the last three financial years ending on or before the first meeting of the members, or any class of members, of the merging company summoned for the purposes of approving the scheme,
        (f) any supplementary accounting statement required by section 817,
        (g) if no statement is required by section 817 because the merging company has made public a recent half-yearly financial report (see subsection 817(2) of that section), that report,
        (h) if a merging company is a non-ADGM company, a statement of all necessary authorisations, if any, required under the laws of the jurisdiction in which it is incorporated or is presently registered in order to consummate a merger under this Part 26 and documentary proof that such authorisations have been obtained.
        (4) The requirement in subsection (1)(a) is subject to section 819(1) (publication of documents on merging company website).
        (5) The requirements of subsection (3)(b) and (3)(c) are subject to section 824 (circumstances in which certain particulars and reports not required) and section 829 (agreement to dispense with reports etc).
        (6) Section 1005 (right to hard copy version) does not apply to a document sent or supplied in accordance with subsection (1)(b) to a member who has consented to information being sent or supplied by the merging company by electronic means and has not revoked that consent.
        (7) Part 4 of Schedule 5 (communications by means of a website) does not apply for the purposes of subsection (1)(b) (but see section 819(5)).
        (8) The requirements in this section are subject to section 825 (other circumstances in which reports and inspection not required).

      • 819. Publication of documents on merging company website (merger)

        (1) Section 818(1)(a) does not apply to a document if the conditions in subsections (2) to (4) are met in relation to that document.

        This is subject to subsection (6).
        (2) The first condition is that the document is made available on a website which—
        (a) is maintained by or on behalf of the merging company, and
        (b) identifies the merging company.
        (3) The second condition is that access to the document on the website is not conditional on payment of a fee or otherwise restricted.
        (4) The third condition is that the document remains available on the website throughout the period beginning one month before, and ending on, the date of any meeting of the merging company summoned for the purpose of approving the scheme.
        (5) A person is able to obtain a copy of a document as required by Section 818(1)(b) if—
        (a) the conditions in subsections (2) and (3) are met in relation to that document, and
        (b) the person is able, throughout the period specified in subsection (4)—
        (i) to retain a copy of the document as made available on the website, and
        (ii) to produce a hard copy of it.
        (6) Where members of a merging company are able to obtain copies of a document only as mentioned in subsection (5), Section 818(1)(a) applies to that document even if the conditions in subsections (2) to (4) are met.

      • 820. Report on material changes of assets of merging companies

        (1) The directors or equivalent office holders of each of the merging companies must report—
        (a) to every meeting of the members, or any class of members, of that merging company summoned for the purpose of agreeing to the scheme, and
        (b) to the directors or equivalent office holders of every other merging company,
        any material changes in the property and liabilities of that merging company between the date when the draft terms were adopted and the date of the meeting in question.
        (2) The directors or equivalent office holders of each of the other merging companies must in turn—
        (a) report those matters to every meeting of the members, or any class of members, of that merging company summoned for the purpose of agreeing to the scheme, or
        (b) send a report of those matters to every member entitled to receive notice of such a meeting.
        (3) The requirement in this section is subject to section 825 (other circumstances in which reports and inspection not required) and section 829 (agreement to dispense with reports etc).

      • 821. Approval of articles of the surviving company (merger by consolidation)

        In the case of a merger by consolidation, the articles of the surviving company, or a draft of them, must be approved by ordinary resolution of each of the merging companies.

      • 822. Protection of holders of securities to which special rights attached (merger)

        (1) The scheme must provide that where any securities of a merging company (other than shares) to which special rights are attached are held by a person otherwise than as a member or creditor of the company, that person is to receive rights in the surviving company of equivalent value.
        (2) Subsection (1) does not apply if—
        (a) the holder has agreed otherwise, or
        (b) the holder is, or under the scheme is to be, entitled to have the securities purchased by the surviving company on terms that the Court considers reasonable.

      • 823. No issue of shares to merging companies or surviving company (merger)

        The scheme must not provide for any shares in the surviving company to be issued to—

        (a) a merging company (or its nominee) in respect of shares in the merging company held by the merging company itself (or its nominee), or
        (b) the surviving company (or its nominee) in respect of shares in a merging company held by the surviving company (or its nominee).

      • 824. Circumstances in which certain particulars and reports not required (merger)

        (1) This section applies in the case of a merger by absorption where all of the relevant securities of the merging company (or, if there is more than one merging company, of each of them) other than the surviving company are held by or on behalf of the surviving company.
        (2) The draft terms of the scheme need not give the particulars mentioned in section 811(2)(b), to 811(2)(e)(e) (particulars relating to allotment of shares to members of merging company).
        (3) Section 803 (statement to be circulated or made available) does not apply.
        (4) The requirements of the following sections do not apply—
        (a) section 815 (directors' or equivalent office holders' explanatory report),
        (b) section 816 (expert's report).
        (5) The requirements of section 818 (inspection of documents) so far as relating to any document required to be drawn up under the provisions mentioned in subsection (4) above do not apply.
        (6) In this section "relevant securities", in relation to a merging company, means shares or other securities carrying the right to vote at general meetings of the merging company.

      • 825. Other circumstances in which reports and inspection not required (merger)

        (1) This section applies in the case of a merger by absorption where 90% or more (but not all) of the relevant securities of the merging company (or, if there is more than one transferor company, of each of them) which is not the surviving company are held by or on behalf of the surviving company.
        (2) If the conditions in subsections (3) and (4) are met, the requirements of the following sections do not apply—
        (a) subsection 810(2)(d) (directors' solvency statement),
        (b) section 815 (directors' or equivalent office holders' explanatory report),
        (c) section 816 (expert's report),
        (d) section 817 (supplementary accounting statement),
        (e) section 818 (inspection of documents), and
        (f) section 820 (report on material changes of assets of merging company).
        (3) The first condition is that the scheme provides that every other holder of relevant securities has the right to require the surviving company to acquire those securities.
        (4) The second condition is that, if a holder of securities exercises that right, the consideration to be given for those securities is fair and reasonable.
        (5) The powers of the Court under section 806(2) (power of Court to facilitate reconstruction or amalgamation or merger or division) include the power to determine, or make provision for the determination of, the consideration to be given for securities acquired under this section.
        (6) In this section—
        "other holder" means a person who holds securities of the merging company which is not the surviving company otherwise than on behalf of the surviving company (and does not include the surviving company itself),

        "relevant securities", in relation to a merging company, means shares or other securities carrying the right to vote at general meetings of the merging company.

      • 826. Circumstances in which meeting of members of surviving company not required (merger)

        (1) This section applies in the case of a merger by absorption where 90% or more (but not all) of the relevant securities of the merging company (or, if there is more than one merging company, of each of them) other than the surviving company are held by or on behalf of the surviving company.
        (2) It is not necessary for the scheme to be approved at a meeting of the members, or any class of members, of the surviving company if the Court is satisfied that the following conditions have been complied with.
        (3) The first condition is that either subsection (4) or subsection (5) is satisfied.
        (4) This subsection is satisfied if publication of notice of receipt of the draft terms by the Registrar took place in respect of the surviving company at least one month before the date of the first meeting of members, or any class of members, of the merging company which is not the surviving company summoned for the purpose of agreeing to the scheme.
        (5) This subsection is satisfied if—
        (a) the conditions in section 813(2) to 813(4) are met in respect of the surviving company,
        (b) the Registrar published the notice mentioned in subsection 813(4) of that section on his website at least one month before the date of the first meeting of members, or any class of members, of the merging company which is not the surviving company summoned for the purpose of agreeing to the scheme, and
        (c) the draft terms remained available on the website throughout the period beginning one month before, and ending on, that date.
        (6) The second condition is that subsection (7) or (8) is satisfied for each of the documents listed in the applicable subsections 818(3)(a) to 818(3)(g) relating to the surviving company and the merging company (or, if there is more than one merging company, each of them) which is not the surviving company.
        (7) This subsection is satisfied for a document if the members of the surviving company were able during the period beginning one month before, and ending on, the date mentioned in subsection (4) to inspect that document at the registered office of that surviving company.
        (8) This subsection is satisfied for a document if—
        (a) the document is made available on a website which is maintained by or on behalf of the surviving company and identifies the surviving company,
        (b) access to the document on the website is not conditional on the payment of a fee or otherwise restricted, and
        (c) the document remains available on the website throughout the period beginning one month before, and ending on, the date mentioned in subsection (4).
        (9) The third condition is that the members of the surviving company were able to obtain copies of the documents mentioned in subsection (6), or any part of those documents, on request and free of charge, throughout the period beginning one month before, and ending on, the date mentioned in subsection (4).
        (10) For the purposes of subsection (9)—
        (a) section 819(5) applies as it applies for the purposes of section 818(1)(b), and
        (b) Part 4 of Schedule 5 (communications by means of a website) does not apply.
        (11) The fourth condition is that—
        (a) one or more members of the surviving company, who together held not less than 5% of the voting rights of the members of the surviving company entitled to vote at general meetings of the surviving company (excluding any shares in the surviving company held as treasury shares) would have been able, during that period, to require a meeting of each class of members to be called for the purpose of deciding whether or not to agree to the scheme, and
        (b) no such requirement was made.
        (12) In this section "relevant securities", in relation to a merging company, means shares or other securities carrying the right to vote at general meetings of the merging company.

      • 827. Circumstances in which no meetings required (merger)

        (1) This section applies in the case of a merger by absorption where all of the relevant securities of the merging company (or, if there is more than one merging company, of each of them) which is not the surviving company are held by or on behalf of the surviving company.
        (2) It is not necessary for the scheme to be approved at a meeting of the members, or any class of members, of any of the merging companies if the Court is satisfied that the following conditions have been complied with.
        (3) The first condition is that either subsection (4) or subsection (5) is satisfied.
        (4) This subsection is satisfied if publication of notice of receipt of the draft terms by the Registrar took place in respect of all the merging companies at least one month before the date of the Court's order.
        (5) This subsection is satisfied if—
        (a) the conditions in section 813(2) to 813(4) are met in respect of each of the merging companies,
        (b) in each case, the Registrar published the notice mentioned in subsection 813(4) of that section on the Registrar's website least one month before the date of the Court's order, and
        (c) the draft terms remained available on the website throughout the period beginning one month before, and ending on, that date.
        (6) The second condition is that subsection (7) or (8) is satisfied for each of the documents listed in the applicable subsections 818(3)(a) to 818(3)(g) relating to the surviving company and the merging company (or, if there is more than one merging company, each of them) which is not the surviving company.
        (7) This subsection is satisfied for a document if the members of the surviving company were able during the period beginning one month before, and ending on, the date mentioned in subsection (4) to inspect that document at the registered office of that merging company.
        (8) This subsection is satisfied for a document if—
        (a) the document is made available on a website which is maintained by or on behalf of the surviving company and identifies the surviving company,
        (b) access to the document on the website is not conditional on the payment of a fee or otherwise restricted, and
        (c) the document remains available on the website throughout the period beginning one month before, and ending on, the date mentioned in subsection (4).
        (9) The third condition is that the members of the surviving company were able to obtain copies of the documents mentioned in subsection (6), or any part of those documents, on request and free of charge, throughout the period beginning one month before, and ending on, the date mentioned in subsection (4).
        (10) For the purposes of subsection (9)—
        (a) section 819(5) applies as it applies for the purposes of section 818(1)(b), and
        (b) Part 4 of Schedule 5 (communications by means of a website) does not apply.
        (11) The fourth condition is that—
        (a) one or more members of the surviving company, who together held not less than 5% of the voting rights of the members of the surviving company entitled to vote at general meetings of the surviving company (excluding any shares in the surviving company held as treasury shares) would have been able, during that period, to require a meeting of each class of members to be called for the purpose of deciding whether or not to agree to the scheme, and
        (b) no such requirement was made.
        (12) In this section "relevant securities", in relation to a merging company, means shares or other securities carrying the right to vote at general meetings of the merging company.

      • 828. Other circumstances in which meeting of members of surviving company not required (merger)

        (1) In the case of any merger by absorption, it is not necessary for the scheme to be approved by the members of the surviving company if the Court is satisfied that the following conditions have been complied with.
        (2) The first condition is that either subsection (3) or subsection (4) is satisfied.
        (3) This subsection is satisfied if publication of notice of receipt of the draft terms by the Registrar took place in respect of the surviving company at least one month before the date of the first meeting of members, or any class of members, of the merging company (or, if there is more than one merging company, any of them) which is not the surviving company summoned for the purposes of agreeing to the scheme.
        (4) This subsection is satisfied if—
        (a) the conditions in section 813(2) to 813(4) are met in respect of the surviving company,
        (b) the Registrar published the notice mentioned in subsection 813(4) of that section on his website at least one month before the date of the first meeting of members, or any class of members, of the merging company (or, if there is more than one merging company, any of them) which is not the surviving company summoned for the purposes of agreeing to the scheme, and
        (c) the draft terms remained available on the website throughout the period beginning one month before, and ending on, that date.
        (5) The second condition is that subsection (6) or (7) is satisfied for each of the documents listed in the applicable subsection 818(3) relating to the surviving company and the merging company (or, if there is more than one merging company, each of them) which is not the surviving company.
        (6) This subsection is satisfied for a document if the members of the surviving company were able during the period beginning one month before, and ending on, the date of any such meeting as is mentioned in subsection (3) to inspect that document at the registered office of that surviving company.
        (7) This subsection is satisfied for a document if—
        (a) the document is made available on a website which is maintained by or on behalf of the surviving company and identifies the surviving company,
        (b) access to the document on the website is not conditional on the payment of a fee or otherwise restricted, and
        (c) the document remains available on the website throughout the period beginning one month before, and ending on, the date of any such meeting as is mentioned in subsection (3).
        (8) The third condition is that the members of the surviving company were able to obtain copies of the documents mentioned in subsection (5), or any part of those documents, on request and free of charge, throughout the period beginning one month before, and ending on, the date of any such meeting as is mentioned in subsection (3).
        (9) For the purposes of subsection (8) —
        (a) section 819(5) applies as it applies for the purposes of section 818(1)(b), and
        (b) Part 4 of Schedule 5 (communications by means of a website) does not apply.
        (10) The fourth condition is that—
        (a) one or more members of that surviving company, who together held not less than 5% of the voting rights of the members of the surviving company entitled to vote at general meetings of the surviving company (excluding any shares in the surviving company held as treasury shares) would have been able, during that period, to require a meeting of each class of members to be called for the purpose of deciding whether or not to agree to the scheme, and
        (b) no such requirement was made.

      • 829. Agreement to dispense with reports etc (merger)

        (1) If all members holding shares in, and all persons holding other securities of, the merging companies, being shares or securities that carry a right to vote in general meetings of the merging company in question, so agree, the following requirements do not apply .
        (2) The requirements that may be dispensed with under this section are—
        (a) the requirements of—
        (i) section 815 (directors' or equivalent office holders' explanatory report),
        (ii) section 816 (expert's report),
        (iii) section 817 (supplementary accounting statement), and
        (iv) section 820 (report on material changes of assets of merging company), and
        (b) the requirements of section 818 (inspection of documents) so far as relating to any document required to be drawn up under sections 815, 816 or 817.
        (3) For the purposes of this section—
        (a) the members, or holders of other securities, of a merging company, and
        (b) whether shares or other securities carry a right to vote in general meetings of the merging company,
        are determined as at the date of the application to the Court under section 802.

    • CHAPTER 3 CHAPTER 3 DIVISION

      • 830. Divisions and companies involved in a division

        (1) The scheme involves a division where under the scheme the undertaking, property and liabilities of a company formed or registered under these Regulations and in respect of which the compromise or arrangement is proposed are to be divided among and transferred to two or more companies each of which is either—
        (a) an existing company, or
        (b) a new company.
        (2) References in this Part to the companies involved in the division are to the transferor company and any existing transferee companies.

      • 831. Draft terms of scheme (division)

        (1) A draft of the proposed terms of the scheme must be drawn up and adopted by the directors of each of the companies involved in the division.
        (2) The draft terms must give particulars of at least the following matters—
        (a) in respect of the transferor company and each transferee company—
        (i) its name,
        (ii) the address of its registered office, and
        (iii) whether it is a company limited by shares or a company limited by guarantee and having a share capital,
        (b) the number of shares in a transferee company to be allotted to members of the transferor company for a given number of their shares (the "share exchange ratio") and the amount of any cash payment,
        (c) the terms relating to the allotment of shares in a transferee company,
        (d) the date from which the holding of shares in a transferee company will entitle the holders to participate in profits, and any special conditions affecting that entitlement,
        (e) the date from which the transactions of the transferor company are to be treated for accounting purposes as being those of a transferee company,
        (f) any rights or restrictions attaching to shares or other securities in a transferee company to be allotted under the scheme to the holders of shares or other securities in the transferor company to which any special rights or restrictions attach, or the measures proposed concerning them,
        (g) any amount of benefit paid or given or intended to be paid or given—
        (i) to any of the experts referred to in section 836 (expert's report), or
        (ii) to any director of a company involved in the division,
        and the consideration for the payment of benefit.
        (3) The draft terms must also—
        (a) give particulars of the property and liabilities to be transferred (to the extent that these are known to the transferor company) and their allocation among the transferee companies,
        (b) make provision for the allocation among and transfer to the transferee companies of any other property and liabilities that the transferor company has acquired or may subsequently acquire, and
        (c) specify the allocation to members of the transferor company of shares in the transferee companies and the criteria upon which that allocation is based.

      • 832. Publication of draft terms by Registrar (division)

        (1) The directors of each company involved in the division must deliver a copy of the draft terms to the Registrar.
        (2) The Registrar must publish on the registar's website notice of receipt from that company of a copy of the draft terms.
        (3) That notice must be published at least one month before the date of any meeting of that company summoned for the purposes of approving the scheme.
        (4) The requirements in this section are subject to section 833 (publication of draft terms on company website) and section 848 (power of Court to exclude certain requirements).

      • 833. Publication of draft terms on company website (division)

        (1) Section 832 does not apply in respect of a company if the conditions in subsections (2) to (6) are met.
        (2) The first condition is that the draft terms are made available on a website which—
        (a) is maintained by or on behalf of the company, and
        (b) identifies the company.
        (3) The second condition is that neither access to the draft terms on the website nor the supply of a hard copy of them from the website is conditional on payment of a fee or otherwise restricted.
        (4) The third condition is that the directors of the company deliver to the Registrar a notice giving details of the website.
        (5) The fourth condition is that the Registrar publishes the notice on his website at least one month before the date of any meeting of the company summoned for the purpose of approving the scheme.
        (6) The fifth condition is that the draft terms remain available on the website throughout the period beginning one month before, and ending on, the date of any such meeting.

      • 834. Approval of members of companies involved in the division

        (1) The scheme must be approved by members of each class of the companies involved in the division representing 75% of the voting rights of the class of members, present and voting either in person or by proxy at a meeting.
        (2) This requirement is subject to sections 844 and 845 (circumstances in which meeting of members not required).

      • 835. Directors' explanatory report (division)

        (1) The directors of the transferor and each existing transferee company must draw up and adopt a report.
        (2) The report must consist of—
        (a) the statement required by section 803 (statement to be circulated or made available), and
        (b) insofar as that statement does not deal with the following matters, a further statement—
        (i) setting out the legal and economic grounds for the draft terms, and in particular for the share exchange ratio and for the criteria on which the allocation to the members of the transferor company of shares in the transferee companies was based, and
        (ii) specifying any special valuation difficulties.
        (3) The report must also state—
        (a) whether a report has been made to any transferee company under section 550 (valuation of non-cash consideration for shares), and
        (b) if so, whether that report has been delivered to the Registrar of companies.
        (4) The requirement in this section is subject to section 846 (agreement to dispense with reports etc) and section 847 (certain requirements excluded where shareholders given proportional rights).

      • 836. Expert's report (division)

        (1) An expert's report must be drawn up on behalf of each of each company involved in the division.
        (2) The report required is a written report on the draft terms to the members of the company.
        (3) The Court may on the joint application of the companies involved in the division approve the appointment of a joint expert to draw up a single report on behalf of all those companies.

        If no such appointment is made, there must be a separate expert's report to the members of each company involved in the division drawn up by a separate expert appointed on behalf of that company.
        (4) The expert must be a person who—
        (a) is eligible for appointment as an auditor, and
        (b) meets the independence requirement in section 850.
        (5) The expert's report must—
        (a) indicate the method or methods used to arrive at the share exchange ratio,
        (b) give an opinion as to whether the method or methods used are reasonable in all the circumstances of the case, indicate the values arrived at using each such method and (if there is more than one method) give an opinion on the relative importance attributed to such methods in arriving at the value decided on,
        (c) describe any special valuation difficulties that have arisen,
        (d) state whether in the expert's opinion the share exchange ratio is reasonable, and
        (e) in the case of an expert valuation made by a person other than himself (see section 849), state that it appeared to him reasonable to arrange for it to be so made or to accept a valuation so made.
        (6) The expert (or each of them) has—
        (a) the right of access to all such documents of the companies involved in the division, and
        (b) the right to require from the companies' officers all such information,
        as he thinks necessary for the purposes of making his report.
        (7) The requirement in this section is subject to section 846 (agreement to dispense with reports etc) and section 847 (certain requirements excluded where shareholders given proportional rights).

      • 837. Supplementary accounting statement (division)

        (1) This section applies if the last annual accounts of a company involved in the division relate to a financial year ending before—
        (a) the date seven months before the first meeting of the company summoned for the purposes of approving the scheme, or
        (b) if no meeting of the company is required (by virtue of section 844 or 845), the date six months before the directors of the company adopt the draft terms of the scheme.
        (2) If the company has not made public a half-yearly financial report relating to a period ending on or after the date mentioned in subsection (1), the directors of the company must prepare a supplementary accounting statement.
        (3) That statement must consist of—
        (a) a balance sheet dealing with the state of affairs of the company as at a date not more than three months before the draft terms were adopted by the directors, and
        (b) where the company would be required under section 389 (duty to prepare group accounts) to prepare group accounts if that date were the last day of a financial year, a consolidated balance sheet dealing with the state of affairs of the company and the undertakings that would be included in such a consolidation.
        (4) The requirements of these Regulations as to the balance sheet forming part of a company's annual accounts, and the matters to be included in notes to it, apply to the balance sheet required for an accounting statement under this section, with such modifications as are necessary by reason of its being prepared otherwise than as at the last day of a financial year.
        (5) The provisions of section 399 (approval and signing of accounts) as to the approval and signing of accounts apply to the balance sheet required for an accounting statement under this section.

        In this section "half-yearly financial report" means a report of that description required to be made public by any rules or regulations applicable in the Abu Dhabi Global Market to listed companies or, in the case of a non-ADGM company, as may be prescribed by rules made by Board for the purposes of this Part.
        (6) The requirement in this section is subject to section 846 (agreement to dispense with reports etc) and section 847 (certain requirements excluded where shareholders given proportional rights).

      • 838. Inspection of documents (division)

        (1) The members of each company involved in the division must be able, during the period specified below—
        (a) to inspect at the registered office of that company copies of the documents listed below relating to that company and every other company involved in the division, and
        (b) to obtain copies of those documents or any part of them on request free of charge.
        (2) The period referred to above is the period—
        (a) beginning one month before, and
        (b) ending on the date of,
        the first meeting of the members, or any class of members, of the company for the purposes of approving the scheme.
        (3) The documents referred to above are—
        (a) the draft terms,
        (b) the directors' explanatory report,
        (c) the expert's report,
        (d) the company's annual accounts and reports for the last three financial years ending on or before the first meeting of the members, or any class of members, of the company summoned for the purposes of approving the scheme,
        (e) any supplementary accounting statement required by section 837, and
        (f) if no statement is required by section 837 because the company has made public a recent half-yearly financial report (see subsection 837(2) of that section), that report.
        (4) The requirement in subsection (1)(a) is subject to section 839(1) (publication of documents on company website).
        (5) The requirements in subsection (3)(b), (3)(c) and (3)(e) are subject to section 846 (agreement to dispense with reports etc), section 847 (certain requirements excluded where shareholders given proportional rights) and section 848 (power of Court to exclude certain requirements).
        (6) Section 1005 (right to hard copy version) does not apply to a document sent or supplied in accordance with subsection (1)(b) to a member who has consented to information being sent or supplied by the company by electronic means and has not revoked that consent.
        (7) Part 4 of Schedule 5 (communications by means of a website) does not apply for the purposes of subsection (1)(b) (but see section 839(5)).

      • 839. Publication of documents on company website (division)

        (1) Section 838(1)(a) does not apply to a document if the conditions in subsections (2) to (4) are met in relation to that document.

        This is subject to subsection (6).
        (2) The first condition is that the document is made available on a website which—
        (a) is maintained by or on behalf of the company, and
        (b) identifies the company.
        (3) The second condition is that access to the document on the website is not conditional on payment of a fee or otherwise restricted.
        (4) The third condition is that the document remains available on the website throughout the period beginning one month before, and ending on, the date of any meeting of the company summoned for the purpose of approving the scheme.
        (5) A person is able to obtain a copy of a document as required by section 838(1)(b) if—
        (a) the conditions in subsections (2) and (3) are met in relation to that document, and
        (b) the person is able, throughout the period specified in subsection (4)—
        (i) to retain a copy of the document as made available on the website, and
        (ii) to produce a hard copy of it.
        (6) Where members of a company are able to obtain copies of a document only as mentioned in subsection (5), section 838(1)(a) applies to that document even if the conditions in subsections (2) to (4) are met.

      • 840. Report on material changes of assets of transferor company (division)

        (1) The directors of the transferor company must report—
        (a) to every meeting of the members, or any class of members, of that company summoned for the purpose of agreeing to the scheme, and
        (b) to the directors of each existing transferee company,
        any material changes in the property and liabilities of the transferor company between the date when the draft terms were adopted and the date of the meeting in question.
        (2) The directors of each existing transferee company must in turn—
        (a) report those matters to every meeting of the members, or any class of members, of that company summoned for the purpose of agreeing to the scheme, or
        (b) send a report of those matters to every member entitled to receive notice of such a meeting.
        (3) The requirement in this section is subject to section 846 (agreement to dispense with reports etc) and section 847 (certain requirements excluded where shareholders given proportional rights).

      • 841. Approval of articles of new transferee company (division)

        The articles of every new transferee company, or a draft of them, must be approved by ordinary resolution of the transferor company.

      • 842. Protection of holders of securities to which special rights attached (division)

        (1) The scheme must provide that where any securities of the transferor company (other than shares) to which special rights are attached are held by a person otherwise than as a member or creditor of the company, that person is to receive rights in a transferee company of equivalent value.
        (2) Subsection (1) does not apply if—
        (a) the holder has agreed otherwise, or
        (b) the holder is, or under the scheme is to be, entitled to have the securities purchased by a transferee company on terms that the Court considers reasonable.

      • 843. No allotment of shares to transferor company or to transferee company (division)

        The scheme must not provide for any shares in a transferee company to be allotted to—

        (a) the transferor company (or its nominee) in respect of shares in the transferor company held by the transferor company itself (or its nominee), or
        (b) a transferee company (or its nominee) in respect of shares in the transferor company held by the transferee company (or its nominee).

      • 844. Circumstances in which meeting of members of transferor company not required (division)

        (1) This section applies in the case of a division where all of the shares or other securities of the transferor company carrying the right to vote at general meetings of the company are held by or on behalf of one or more existing transferee companies.
        (2) It is not necessary for the scheme to be approved by a meeting of the members, or any class of members, of the transferor company if the Court is satisfied that the following conditions have been complied with.
        (3) The first condition is that either subsection (4) or subsection (5) is satisfied.
        (4) This subsection is satisfied if publication of notice of receipt of the draft terms by the Registrar took place in respect of all the companies involved in the division at least one month before the date of the Court's order.
        (5) This subsection is satisfied if—
        (a) the conditions in section 833(2) to 833(4) are met in respect of each of the companies involved in the division,
        (b) in each case, the Registrar published the notice mentioned in subsection 833(4) of that section on the registar's website at least one month before the date of the Court's order, and
        (c) the draft terms remained available on the website throughout the period beginning one month before, and ending on, that date.
        (6) The second condition is that subsection (7) or (8) is satisfied for each of the documents listed in the applicable subsection 838(3) relating to every company involved in the division.
        (7) This subsection is satisfied for a document if the members of every company involved in the division were able during the period beginning one month before, and ending on, the date of the Court's order to inspect that document at the registered office of their company.
        (8) This subsection is satisfied for a document if—
        (a) the document is made available on a website which is maintained by or on behalf of the company to which it relates and identifies the company,
        (b) access to the document on the website is not conditional on payment of a fee or otherwise restricted, and
        (c) the document remains available on the website throughout the period beginning one month before, and ending on, the date of the Court's order.
        (9) The third condition is that the members of every company involved in the division were able to obtain copies of the documents mentioned in subsection (6), or any part of those documents, on request and free of charge, throughout the period beginning one month before, and ending on, the date of the Court's order.
        (10) For the purposes of subsection (9)—
        (a) section 839(5) applies as it applies for the purposes of section 838(1)(b), and
        (b) Part 4 of Schedule 5 (communications by means of a website) does not apply.
        (11) The fourth condition is that the directors of the transferor company have sent—
        (a) to every member who would have been entitled to receive notice of a meeting to agree to the scheme (had any such meeting been called), and
        (b) to the directors of every existing transferee company,
        a report of any material change in the property and liabilities of the transferor company between the date when the terms were adopted by the directors and the date one month before the date of the Court's order.

      • 845. Circumstances in which meeting of members of transferee company not required (division)

        (1) In the case of a division, it is not necessary for the scheme to be approved by the members of a transferee company if the Court is satisfied that the following conditions have been complied with in relation to that company.
        (2) The first condition is that either subsection (3) or subsection (4) is satisfied.
        (3) This subsection is satisfied if publication of notice of receipt of the draft terms by the Registrar took place in respect of the transferee company at least one month before the date of the first meeting of members of the transferor company summoned for the purposes of agreeing to the scheme.
        (4) This subsection is satisfied if—
        (a) the conditions in section 833(2) to 833(4) are met in respect of the transferee company,
        (b) the Registrar published the notice mentioned in subsection 833(4) of that section on the Registrar's website at least one month before the date of the first meeting of members of the transferor company summoned for the purposes of agreeing to the scheme, and
        (c) the draft terms remained available on the website throughout the period beginning one month before, and ending on, that date.
        (5) The second condition is that subsection (6) or (7) is satisfied for each of the documents listed in the applicable subsection 838(3) relating to the transferee company and every other company involved in the division.
        (6) This subsection is satisfied for a document if the members of the transferee company were able during the period beginning one month before, and ending on, the date mentioned in subsection (3) to inspect that document at the registered office of that company.
        (7) This subsection is satisfied for a document if—
        (a) the document is made available on a website which is maintained by or on behalf of the transferee company and identifies the company,
        (b) access to the document on the website is not conditional on payment of a fee or otherwise restricted, and
        (c) the document remains available on the website throughout the period beginning one month before, and ending on, the date mentioned in subsection (3).
        (8) The third condition is that the members of the transferee company were able to obtain copies of the documents mentioned in subsection (5), or any part of those documents, on request and free of charge, throughout the period beginning one month before, and ending on, the date mentioned in subsection (3).
        (9) For the purposes of subsection (8)—
        (a) section 839(5) applies as it applies for the purposes of section 838(1)(b), and
        (b) Part 4 of Schedule 5 (communications by means of a website) does not apply.
        (10) The fourth condition is that—
        (a) one or more members of that company, who together held not less than 5% of the voting rights of the members of the surviving company entitled to vote at general meetings of the surviving company (excluding any shares in the company held as treasury shares) would have been able, during that period, to require a meeting of each class of members to be called for the purpose of deciding whether or not to agree to the scheme, and
        (b) no such requirement was made.
        (11) The first, second and third conditions above are subject to section 848 (power of Court to exclude certain requirements).

      • 846. Agreement to dispense with reports etc (division)

        (1) If all members holding shares in, and all persons holding other securities of, the companies involved in the division, being shares or securities that carry a right to vote in general meetings of the company in question, so agree, the following requirements do not apply.
        (2) The requirements that may be dispensed with under this section are—
        (a) the requirements of—
        (i) section 835 (directors' explanatory report),
        (ii) section 836 (expert's report),
        (iii) section 837 (supplementary accounting statement), and
        (iv) section 840 (report on material changes in assets of transferor company), and
        (b) the requirements of section 838 (inspection of documents) so far as relating to any document required to be drawn up under the provisions mentioned in subsection (a)(i), (a)(ii) or (a)(iii) above.
        (3) For the purposes of this section—
        (a) the members, or holders of other securities, of a company, and
        (b) whether shares or other securities carry a right to vote in general meetings of the company,
        are determined as at the date of the application to the Court under section 802.

      • 847. Certain requirements excluded where shareholders given proportional rights (division)

        (1) This section applies in the case of a division where each of the transferee companies is a new company.
        (2) If all the shares in each of the transferee companies are to be allotted to the members of the transferor company in proportion to their rights in the allotted share capital of the transferor company, the following requirements do not apply.
        (3) The requirements which do not apply are—
        (a) the requirements of—
        (i) section 835 (directors' explanatory report),
        (ii) section 836 (expert's report),
        (iii) section 837 (supplementary accounting statement), and
        (iv) section 840 (report on material changes in assets of transferor company), and
        (b) the requirements of section 838 (inspection of documents) so far as relating to any document required to be drawn up under the provisions mentioned in subsection (a)(i), (a)(ii) or (a)(iii) above.

      • 848. Power of Court to exclude certain requirements (division)

        (1) In the case of a division, the Court may by order direct that—
        (a) in relation to any company involved in the division, the requirements of—
        (i) section 832 (publication of draft terms), and
        (ii) section 838 (inspection of documents),
        do not apply, and
        (b) in relation to an existing transferee company, section 845 (circumstances in which meeting of members of transferee company not required) has effect with the omission of the first, second and third conditions specified in that section,
        if the Court is satisfied that the following conditions will be fulfilled in relation to that company.
        (2) The first condition is that the members of that company will have received, or will have been able to obtain free of charge, copies of the documents listed in section 838
        (a) in time to examine them before the date of the first meeting of the members, or any class of members, of that company summoned for the purposes of agreeing to the scheme, or
        (b) in the case of an existing transferee company where in the circumstances described in section 845 no meeting is held, in time to require a meeting as mentioned in subsection 845(4) of that section.
        (3) The second condition is that the creditors of that company will have received or will have been able to obtain free of charge copies of the draft terms in time to examine them—
        (a) before the date of the first meeting of the members, or any class of members, of the company summoned for the purposes of agreeing to the scheme, or
        (b) in the circumstances mentioned in subsection (2)(b) above, at the same time as the members of the company.
        (4) The third condition is that no prejudice would be caused to the members or creditors of the transferor company or any transferee company by making the order in question.

    • CHAPTER 4 CHAPTER 4 SUPPLEMENTARY PROVISIONS

      • 849. Expert's report: valuation by another person

        (1) Where it appears to an expert—
        (a) that a valuation is reasonably necessary to enable him to draw up his report, and
        (b) that it is reasonable for that valuation, or part of it, to be made by (or for him to accept a valuation made by) another person who—
        (i) appears to him to have the requisite knowledge and experience to make the valuation or that part of it, and
        (ii) meets the independence requirement in section 850,
        he may arrange for or accept such a valuation, together with a report which will enable him to make his own report under section 816 or 836.
        (2) Where any valuation is made by a person other than the expert himself, the latter's report must state that fact and must also—
        (a) state the former's name and what knowledge and experience he has to carry out the valuation, and
        (b) describe so much of the undertaking, property and liabilities as was valued by the other person, and the method used to value them, and specify the date of the valuation.

      • 850. Experts and valuers: independence requirement

        (1) A person meets the independence requirement for the purposes of section 816 or 836 (expert's report) or section 849 (valuation by another person) only if—
        (a) he is not—
        (i) an officer or employee of any of the companies or bodies corporate concerned in the scheme, or
        (ii) a partner or employee of such a person, or a partnership of which such a person is a partner,
        (b) he is not—
        (i) an officer or employee of an associated undertaking of any of the companies or bodies corporate concerned in the scheme, or
        (ii) a partner or employee of such a person, or a partnership of which such a person is a partner, and
        (c) there does not exist between—
        (i) the person or an associate of his, and
        (ii) any of the companies or bodies corporate concerned in the scheme or an associated undertaking of such a company or body corporate,
        a connection of any such description as may be specified by rules made by the Board.
        (2) An auditor of a company or body corporate is not regarded as an officer or employee of the company for this purpose.
        (3) For the purposes of this section—
        (a) the "companies concerned in the scheme" means every merging company, transferor and existing transferee company,
        (b) "associated undertaking", in relation to a company or body corporate, means—
        (i) a parent undertaking or subsidiary undertaking of the company or body corporate, or
        (ii) a subsidiary undertaking of a parent undertaking of the company or body corporate, and
        (c) "associate" has the meaning given by section 851.

      • Expert's report and related matters

        • 851. Experts and valuers: meaning of "associate"

          (1) This section defines "associate" for the purposes of section 850 (experts and valuers: independence requirement).
          (2) In relation to an individual, "associate" means—
          (a) that individual's spouse or minor child or step-child,
          (b) any body corporate of which that individual is a director, and
          (c) any employee or partner of that individual.
          (3) In relation to a body corporate, "associate" means—
          (a) any body corporate of which that body is a director,
          (b) any body corporate in the same group as that body, and
          (c) any employee or partner of that body or of any body corporate in the same group.

      • Powers of the Court

        • 852. Power of Court to summon meeting of members or creditors of existing merging company or transferee company

          (1) The Court may order a meeting of—
          (a) the members of an existing transferee company, or any class of them, or
          (b) the creditors of an existing transferee company, or any class of them,
          to be summoned in such manner as the Court directs.
          (2) An application for such an order may be made by—
          (a) the company concerned,
          (b) a member or creditor of the company,
          (c) if the company is being wound up, the liquidator, or
          (d) if the company is in administration, the administrator.
          (3) Section 341 (representation of corporations at meetings) applies to a meeting of creditors under this section as to a meeting of the company (references to a member being read as references to a creditor).

        • 853. Court to fix date of merger or for transfer of undertaking etc of transferor company

          (1) Where the Court sanctions the compromise or arrangement, it must—
          (a) in the order sanctioning the compromise or arrangement, or
          (b) in a subsequent order under section 806 (powers of Court to facilitate reconstruction or amalgamation or merger or division),
          fix a date on which the merger by absorption, merger by consolidation or division is to take place.
          (2) Any such order that provides for the dissolution of the transferor company must fix the same date for the dissolution.
          (3) If it is necessary for the transferor company to take steps to ensure that the undertaking, property and liabilities are fully transferred, the Court must fix a date, not later than six months after the date fixed under subsection (1), by which such steps must be taken.
          (4) In that case, the Court may postpone the dissolution of the transferor company until that date.
          (5) The Court may postpone or further postpone the date fixed under subsection (3) if it is satisfied that the steps mentioned cannot be completed by the date (or latest date) fixed under that subsection.

      • Liability of transferee companies

        • 854. Liability of transferee companies for each other’s defaults

          (1) In the case of a division, each transferee company is jointly and severally liable for any liability transferred to any other transferee company under the scheme to the extent that the other company has made default in satisfying that liability. This is subject to the following provisions.
          (2) If 75% in value of the creditors or class of creditors or members or class of members (as the case may be) representing 75% of the voting rights of the members or class of members (as the case may be), present and voting either in person or by proxy at a meeting summoned for the purposes of agreeing to the scheme, so agree, subsection (1) does not apply in relation to the liabilities owed to the creditors or that class of creditors.
          (3) A transferee company is not liable under this section for an amount greater than the net value transferred to it under the scheme.

          The "net value transferred" is the value at the time of the transfer of the property transferred to it under the scheme less the amount at that date of the liabilities so transferred.

      • Disruption of websites

        • 855. Disregard of website failures beyond control of company

          (1) A failure to make information or a document available on the website throughout a period specified in any of the provisions mentioned in subsection (2) is to be disregarded if—
          (a) it is made available on the website for part of that period, and
          (b) the failure to make it available throughout that period is wholly attributable to circumstances that it would not be reasonable to have expected the company to prevent or avoid.
          (2) The provisions referred to above are—
          (a) section 813(6),
          (b) section 819(4),
          (c) section 826(5) and 826(8),
          (d) section 827(5) and 827(8),
          (e) section 828(4) and 828(7),
          (f) section 833(6),
          (g) section 839(4),
          (h) section 844(5) and 844(8), and
          (i) section 845(4) and 845(7).

      • Interpretation

        • 856. Meaning of "liabilities" and "property"

          In this Part—

          "liabilities" includes duties,

          "property" includes property, rights and powers of every description.