Amendments to the Takeovers Act and the Code
Published 1 November 2006
The passage of the Securities Legislation Bill, which amends significant areas of securities and takeovers laws, has resulted in amendments to the Takeovers Act 1993 and the Takeovers Code in four significant areas, three of which have immediate effect.
The four areas are:
(1) the definitions of “Code company” in the Code and “specified company” in the Takeovers Act have been changed;
(2) the Code and Act will specifically empower the Panel and Court to deal with misleading and deceptive conduct in relation to all Code-related transactions and events (these provisions are to come into effect at a later date, expected to be early-to- mid 2007);
(3) the Panel’s enforcement powers have been expanded; and
(4) the penalties and remedies under the Takeovers Act have been increased and broadened.
The changes in paragraphs 1, 3 and 4 came into effect on 25 October 2006.