On 1 December 2016 a new exemption for ‘small’ unlisted Code companies came into force: Takeovers Code (Small Code Companies) Exemption Notice 2016. The new small Code companies class exemption extends the scope of the original exemption to any person who increases their holding or control of voting rights in a small Code company, not only as a result of an allotment (which was covered in the original exemption), but also as a result of an acquisition of voting securities in the small Code company, or as a result of a buyback of voting securities carried out by the small Code company. The exemption allows the small Code company to opt out of full Code compliance for the transaction.

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