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Guide to merging financial businesses
Financial Times 2012-2015Matheson is ranked in the FT’s top 10 European law firms 2015. Matheson has also been
commended by the FT for corporate law, finance law, dispute resolution and corporate strategy.
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2Contents
Introduction 3
SchemeofArrangement 4
Cross-BorderMerger 6
PrivateCompanyMerger 9
PLCMerger 12
InsurancePortfolioTransfer 15
Statutoryschemefortransferofbankingbusiness 17
CompaniesAct2014 20
ComparativeAnalysisTable 23
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3
InthisguidewesummarisethekeyfeaturesofthedifferenttypesofmergerwhichcanbeimplementedunderIrishlegislation.Theseproceduresdifferfromthetwomostcommonwaysinwhichbusinessescometogether-acquisitionofthesharesorassetsofonecompanybyanother-inonekeyrespect.Theycanallowthepartiestomergetheassetsand/orliabilitiesoftwoseparateentitiesontoonebalancesheet,withouttheneedtonovateand/orassigncontractsfromoneentitytotheother.Inpractice,thiscanbeaverysignificantlogisticalbenefitinusingtheseprocedures.Theextenttowhichthatfacilityisavailabledependsonthetypeofmergerinvolved.
Decidingwhichoftheseproceduresissuitableinthecircumstances,orwhetheracombinationoftwoofthemshouldbeused,requiresacarefulassessmentoftheassetstobemerged,thepotentialimpactofthelawofjurisdictionsoutsideIreland,thelikelytimescalesandtheimpacton,andlikelyreactionof,thirdparties.AnassessmentoftheimpactonemployeesandthepotentialimpactofTUPEwillalsoneedtobeconsidered.
Wehaveconsiderableexperienceadvisingonthesealternatives.WewerethefirstlawfirminIrelandtoadviseontheuseofSchemesofArrangementtomergebusinessesinvolvingmultiplethirdpartycontracts.WealsodraftedthelegislationtoprovideforCross-BorderMergersandhaveimplementedmoreCross-BorderMergersthananyotherIrishlawfirm,includingimplementing“back-to-back”mergers.
TheCompaniesAct2014(whichcameintoforceon1June2015)simplifiedcertainaspectsofmergingIrishbusinessesandintroducednewprocedureswhichmaynowbefollowedtoimplementmergersanddivisions.
Wehopeyouwillfindthisguidehelpfulandwouldbehappytohearfromyouifyouhaveanyqueries.
Introduction
Tim Scanlon PARTNERANDHEADOFCORPORATEGROUPANDFINANCIALINSTITUTIONSGROUP
T +35312322183
Joe Beashel PARTNERANDHEADOFTHEREGULATORYRISKMANAGEMENTANDCOMPLIANCETEAM
T +35312322101
Darren Maher PARTNERANDHEADOFCORPORATEINSURANCE
T +35312322398
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SchemeofArrangement
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5
Process
ThisisastatutoryprocedureunderSection450ofthe2014Act.
ASchemecanbeusedtoimplementthemergeroftwocompanies.Allorpartoftheassetsandliabilities(includingcontractswiththirdparties)ofatransferorcompany(the“Transferor”)canbetransferredtoatransfereecompany(the“Transferee”)byCourtOrder.Thisobviatestheneedforindividualassignments/novationsofcontracts.
Approvalofthe“Scheme”isrequiredatmeetingsofrelevantshareholders/creditorsconvenedbythedirectorsoftheTransferoror,ifthedirectorsdonotexercisethispower,theHighCourt(uponanapplicationtoitbycertainpersonssuchasashareholderorcreditor).
Whereamajorityinnumberrepresenting75%invalueofthosevotingatthemeetingsapprovetheScheme,theCourtcansubsequentlyorderthattheSchemebebinding-evenondissenting,absentoruntraceablemembersorcreditors.DissentingmembersandcreditorswillhaveanopportunitytoobjectatthehearingatwhichtheOrderissought.
Anotificationto,ortheapprovalof,theCentralBankmayberequiredandanyrelevantregulatoryissuesinjurisdictionsoutsideIrelandneedtobeaddressed.
TheTransferormayapplytotheCourtforacancellationofitsexistingsharecapitalandforitsdissolutionwithoutneedingtogothroughawindingupprocess.Alternatively,theSchemecanbeeffectedasatransferorpartialtransferofbusinesssuchthattheTransferorisnotdissolvedandmayremaininexistenceorcommenceavoluntarywindingupprocedure.
Points to Note
TheSchememaynotbelegallyeffectiveinthecaseofcontractswhicharenotgovernedbyIrishlawif,undertherelevantgoverninglaw,theSchemewouldnotberecognised.Stepsmayneedtobetaken,dependingontherelevantgoverninglaw,inordertoassignornovatethesecontractsoutsidetheSchemeprocess.SimilarlyaSchememaynotbeeffectivetotransferassetsoftheTransferorlocatedoutsideIreland.
ChangeofControlprovisionsincontractsneedtobereviewedtodeterminewhethertheSchemewilltriggerarighttoterminate,astheCourtOrderwillnotoverridethoseterminationprovisions.
TherequirementforCourtapprovalinordertomaketheSchemebindingmeansthereisalessflexibletimetableandtheprocesswillbeinthepublicdomain.However,thisinflexibilityhasbeenmitigatedbythe2014Actasonlyonecourtapplicationisnowrequired,providedthedirectorsexercisetheirpowertoconvenetherelevantshareholder/creditormeetings.UnderthepriorCompaniesActs,atleasttwocourtapplicationswerenecessaryinordertobringaSchemeintoeffect.
IfaninsurancebusinessisbeingmergedunderaSchemethenaseparatePortfolioTransferisrequired.ThetwoCourtprocessesfortheSchemeandforthePortfolioTransferwillrunintandem.
SchemeofArrangement
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Cross-borderMerger
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7Cross-borderMerger
Process
TheEuropeanCommunities(Cross-BorderMergers)Regulations2008(the“2008Regulations”)provideforCross-BorderMergersbetweenIrishlimitedliabilitycompaniesandlimitedliabilitycompaniesinotherEEAMemberStates.WeadvisedtheGovernmentonthedraftingofthe2008Regulations.
UnderaCross-BorderMerger,alloftheassetsandliabilities(includingcontracts)ofoneormoreTransferorCompaniesareautomaticallytransferredtoaSuccessorCompanybywayofuniversalsuccessionandeachoftheTransferorCompaniesisthendissolvedwithoutgoingintoliquidation.The2008Regulationsprovidespecificallyformergersbetweenparentcompanyandsubsidiary,aswellasbetweensistercompaniesandunrelatedcompanies.
TheproceduretobefollowedinordertoeffectaCross-BorderMergerinvolves:
•thepreparationofcertaindocumentsbyeachpartytotheCross-BorderMerger,includingthecommondrafttermsoftheCross-BorderMerger;
•theapprovaloftheCross-BorderMergerbythemembersofeverymergingcompany;
•theapplicationbyeveryIrishmergingcompanytotheHighCourttoconfirmthatthevariousrequirementsunderthe2008Regulationshavebeencompliedwith;and
•wheretheSuccessorCompanyisanIrishcompany,anapplicationtotheHighCourtforacourtordertoapprovetheCross-BorderMerger.
Anotificationto,ortheapprovalof,theCentralBankmayberequiredandanyrelevantregulatoryissuesinjurisdictionsoutsideIrelandneedtobeaddressed.
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8Cross-borderMerger
Points to Note
AnadvantagetotheCross-BorderMergeroveraSchemeisthatitwillberecognisedthroughouttheEU/EEAandsoforeignlawgovernedcontractsareonlypotentiallyproblematicifthegoverninglawjurisdictionisnotanEU/EEAmember.
ThesameChangeofControlissuesariseaswithaScheme.
Inthecaseofamergerinvolvinginsurancebusinesses,aseparatePortfolioTransfermayberequiredbutinpracticethetwoCourtprocessesfortheCross-BorderMergerandthePortfolioTransfercanberunintandem.
AkeypracticaldifferencebetweenaCross-BorderMergerandaSchemeisthat,inaCross-BorderMerger,thetwoentitiesinvolvedmustbeindifferentEU/EEAmemberstates.ConsequentlytomergetwoIrishcompaniesusingCross-BorderMergersa“backtobackmerger”involvingathirdcompanyinanotherEU/EEAmemberstatesjurisdictionwouldberequired.The2014ActintroducedanewformofmergerbetweentwoprivatecompaniesincorporatedinIreland.
PartialtransfersarenotachievableunderaCross-BorderMerger,whereastheyareunderaScheme.
AstheTransferordissolvesautomaticallyapre-mergerreorganisationmayberequiredinordertotransferassetsand/orliabilitiesoftheTransferorelsewherewithintheGroup,whereitisnotintendedthatsuchassetsorliabilitiesaretotransferaspartoftheCross-BorderMerger.
TheprocessalsoallowsforemployeeparticipationrightswhicharenotafeatureofSchemesorPrivateCompanyorPLCMergers.
TheprocesstoimplementaCross-BorderMergeris,asageneralcomment,morestreamlinedthantheprocessforaScheme.
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PrivateCompanyMerger
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10PrivateCompanyMerger
The2014Actprovides,forthefirsttimeunderIrishlaw,foranewformofmergerthatcanbeeffectedbetweenprivatecompaniesincorporatedinIreland(“PrivateCompanyMerger”).Theprocedureisonlyavailablewherenoneofthemergingcompaniesareaplcandone,atleast,ofsuchcompaniesisaprivatecompanylimitedbyshares.
TheprocesstobefollowedinimplementingaPrivateCompanyMergerisverysimilartotheCross-BorderMergerprocess,astherelevantprovisionsofthe2014Acthavebeenmodelledonthe2008Regulations.
AlloftheassetsandliabilitiesofoneormoreTransferorCompaniescanbetransferredtoaSuccessorCompany;theTransferorCompaniesarethendissolvedwithoutgoingintoliquidation.
Inbroadterms,themergermaytakeeffectasfollows:
(a)thedirectorsofboththeTransferorandTransfereepreparetherelevantmergerdocumentationwhichmustbefiledintheCompaniesRegistrationOffice(“CRO”)andpublishedintheCROGazetteandonenationalnewspaper;
(b)aftera30dayperiodhaselapsed,thecommondrafttermsofmergermustbeapprovedbyaspecialresolutionpassedatageneralmeetingofeachofthemergingcompanies;and
(c)theTransferorandTransfereemaythenmakeajointapplicationtotheCourtforanorderconfirmingthemerger.
Asanalternativetotheprocessabove,the2014Acthasintroducedasimplifiedprocesswhichcanbefollowedbycompaniestoimplementcertainactivities(whichwouldotherwisebesubjecttorestrictionsunderthe2014Act),knownasthesummaryapprovalprocedure(“SAP”).TheSAPmaybeusedtoimplementamergerandinvolvesthefollowingsteps:
(a)adeclarationofsolvencythatcomplieswithSection206ofthe2014Acttobeswornbythedirectors/amajorityofdirectorsofeachofthemergingcompanies;
(b)thedeclarationreferredtoat(a)abovemustbeaccompaniedbyadocumentpreparedbythedirectors/majorityofdirectorsofeachoftheTransferorandTransfereeconfirmingcertainparticularswithrespecttothemerger;and
(c)aunanimousshareholderresolutionapprovingthemerger.
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11PrivateCompanyMerger
Points to Note
AsthePrivateCompanyMergerisanewprocedure,thereislimitedprecedentinIrelandwithrespecttosuchmergerstodate.
TheavailabilityoftheSAPforthepurposesofaPrivateCompanyMergerisusefulasitremovescourtinvolvementwhichcanbecostlyandtimeconsuming.TheCourtprocesswillremainrelevantforPLCMergersassuchcompaniescannotavailoftheSAPtoeffectamerger.
AstheTransferordissolvesautomatically,apre-mergerreorganisationmayberequiredinordertotransferassetsand/orliabilitiesoftheTransferorelsewherewithintheGroupwhereitisnotintendedthatsuchassetsorliabilitiesaretotransferaspartofthemerger.
NoemployeeparticipationrightsariseunderaPrivateCompanyMerger(bycontrastwithaCross-BorderMerger).
APrivateCompanyMergermaynotbelegallyeffectiveinthecaseofcontractswhicharenotgovernedbyIrishlaw.Dependingontherelevantgoverninglaw,itmaybenecessarytoassignornovatecertaincontractsoutsidethemergerprocess.Similarly,themergermaynotbeeffectivetotransferassetsoftheTransferorlocatedoutsideofIreland.ThesameChangeofControlissuesariseaswithaSchemeandaCross-BorderMerger.
PartialtransfersarenotachievableunderaPrivateCompanyMerger.The2014Actdoeshoweverprovidefordivisionsofprivatecompaniesandasubsequentmergerprocessortransactioncouldbeconductedwiththerelevantpartofthedividedentity.Anotificationto,ortheapprovalof,theCentralBankmayberequiredandanyrelevantregulatoryissuesinjurisdictionsoutsideIrelandneedtobeaddressed.
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PLCMerger
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13PLCMerger
Process
The2014ActintroducesaprocessforthemergerofpubliclimitedcompaniesregisteredinIreland(“PLCMerger”),whichreplacesthepreviousregimegoverningPLCMergersundertheEuropeanCommunities(MergersandDivisionofCompanies)Regulations1987.Thismechanismisavailableunderthe2014Act,providedatleastoneofthemergingcompaniesisaplc.
APLCMergerisverysimilartoaCross-BorderMerger,astherelevantprovisionsofthe2014Acthavebeenmodelledonthe2008Regulations.
InordertoimplementaPLCMergerthedirectorsofboththeTransferorandTransfereemustpreparetherelevantmergerdocumentationwhichmustbefiledintheCROandbepublishedintheCROGazette.
Aftera30dayperiodhaselapsed,thedrafttermsofmergermustbeapprovedbyaspecialresolutionpassedatageneralmeetingofeachofthemergingcompanies.TheTransferorandTransfereemaythenmakeajointapplicationtotheCourtforanorderconfirmingthePLCMerger.
TheCourtmaymakeanorderconfirmingthePLCMergerprovidedtherequirementsofthe2014Acthavebeencompliedwithandproperprovisionhasbeenmadeforanydissentingcreditorsorshareholders.Holdersofsecuritiesotherthansharesmust,incertaincircumstances,begiventhesameinterestsintheTransferee.TheorderoftheCourtwillcausealltheassetsandliabilitiesoftheTransferorCompanytotransfertotheTransfereeCompanyinaccordancewiththedrafttermsofmergerasapprovedbytheCourt.TheTransferorisdissolvedonthemergerbecomingeffective.
Anotificationto,ortheapprovalof,theCentralBankmayberequiredandanyrelevantregulatoryissuesinjurisdictionsoutsideIrelandneedtobeaddressed.
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14PLCMerger
Points to Note
AsthePLCMergerisanewprocedure,thereislimitedprecedentinIrelandwithrespecttosuchmergersunderthe2014Acttodate.
AstheTransferordissolvesautomatically,apre-mergerreorganisationmayberequiredinordertotransferassetsand/orliabilitiesoftheTransferorelsewherewithintheGroupwhereitisnotintendedthatsuchassetsorliabilitiesaretotransferaspartofthemerger.
NoemployeeparticipationrightsariseunderaPLCMerger(bycontrastwithaCross-BorderMerger).AswithaSchemeandthePrivateCompanyMerger,aPLCMergermaynotbeeffectiveforthepurposesofnon-Irishlawgovernedcontractsand/orthetransferofassetsoutsideofIreland.ThesameChangeofControlissuesalsoariseaswithaScheme,aCross-BorderMergerandaPrivateCompanyMerger.
PartialtransfersarenotachievableunderaPLCMerger.
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InsurancePortfolioTransfer
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Process
Aportfoliotransfer(“PortfolioTransfer”)involvesthetransferoftheinsuranceassetsandliabilities(oraportionthereof)ofoneauthorisedinsurer(the“Transferor”)toanotherauthorisedinsurer(the“Transferee”)andisaprocesswhichisrecognisedthroughouttheEU/EEA.
InordertotransferinsurancebusinesswhichhasbeenconcludedinIreland,section13oftheAssuranceCompaniesAct1909andsection36oftheInsuranceAct1989requirethatanapplicationforcourtsanctionismadebywayofpetitiontotheIrishHighCourt.Inaddition,theEuropeanUnion(InsuranceandReinsurance)Regulations2015alsorequirethattheIrishHighCourtsanctionsanyschemeofassignmentortransferofinsurancebusinessconcludedinIreland.
InordertoobtaintheapprovaloftheHighCourt,certainconditionsarerequiredtobefulfilledincludingthefollowing:
•theconsentoftheCentralBankmustbeobtained.TheCentralBankwillinturnliaisewithanyotherrelevantregulatoryauthorities(includingtheregulatoryauthorityresponsibleforsupervisingtheTransferee);
•policyholdernotifications(includinganindependentexpertreport,wherenecessary)musthavebeenmadeintheapprovedformat;and
•anypublicationrequirementsimposedmusthavebeensatisfied.
TheinsurancebusinessoftheTransferorisconsolidatedintotheinsurancebusinessoftheTransferee,withouttheTransfereehavingtoacquirethecorporateentityoftheTransferor.
ItispossibleaspartofaPortfolioTransfertoobtainanancillaryorderfromtheIrishHighCourtundersection36ofthe1989Act(“Section36”)whicheffectsthetransferofnon-insuranceassetsandliabilitiesoftheTransferortotheTransferee.
Points to Note
Adisadvantageisthatwherethenon-insuranceassetsandliabilitiesoftheTransferorarelocatedinEU/EEAMemberStatesoutsideIrelandorwherecontractstowhichtheTransferorisapartyaregovernedbythelawofanEU/EEAMemberStateotherthanIreland,thereissomedoubtastotheeffectivenessofanordergrantedunderSection36totransfersuchassetsandliabilities.RecentpracticeinIrelandthereforehasbeentoeffectthetransferofinsuranceassetsandliabilitiesbywayofaPortfolioTransferandthenon-insuranceassetsandliabilitiesbywayofaCross-BorderMerger.
InsurancePortfolioTransfer
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Statutoryschemefortransferofbankingbusiness
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18Statutoryschemefortransferofbankingbusiness
Process
ThetransferofassetsandliabilitiesrelatingtoabankingbusinessfromoneIrishlicensedbank(ora“passportedbranch”ofanEUCreditInstitution)toanotherIrishlicensedbank(ora“passportedbranch”ofanEUCreditInstitution)maybeeffectedbywayofastatutoryschemeoftransferassetoutinPartIIIoftheCentralBankAct1971(the“1971Act”).
Thepartiesmustsubmitaschemeforthetransfer(“BankSchemeofTransfer”)totheMinisterforFinance(the“Minister”)forhisapproval.TheBankSchemeofTransfershouldbesubmittednotlessthanfourmonthspriortotheproposedtransferdate.
TheMinister,afterconsultationwiththeCentralBank,willeitherapproveordeclinetoapprovetheproposedBankSchemeofTransferbyordernotlessthantwomonthsbeforethetransferdate.
ThestepstoeffectaBankSchemeofTransferareasfollows:
•ABankSchemeofTransferisdrafted,togetherwitharelatedtransferagreement;
•TheCentralBankandtheDepartmentofFinance“pre-clear”thedraftBankSchemeofTransferinadvance(thisreviewgenerallytakesaboutonemonth);
•TheBankSchemeofTransferandexecutedtransferagreementmustbesubmittedtotheMinisterforFinanceatleastfourmonthspriortotheproposedtransferdate;
•TheMinister,afterconsultationwiththeCentralBank,willeitherapproveordeclinetoapprovetheproposedBankSchemeofTransferbyorder(effectedpursuanttoaStatutoryInstrument)notlessthantwomonthspriortotheproposedtransferdate;and
•FollowingtheapprovaloftheBankSchemeofTransferbytheMinister,noticeoftheBankSchemeofTransfermustbepublishedinatleastonedailynewspaperatleastonemonthpriortotheproposedtransferdate.
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19Statutoryschemefortransferofbankingbusiness
Points to Note
OneadvantageofaBankSchemeofTransferisthatanypotentialissueswillbeidentifiedinthepre-clearancephaseandcanberemediedpriortotheformalsubmissionoftheBankSchemeofTransfertotheMinister.Theriskofissuesemergingwhichmayaffectthetimetableisreduced.
TheBankSchemeofTransfermaynotbelegallyeffectiveinthecaseofcontractswhicharenotgovernedbyIrishlawif,undertherelevantgoverninglaw,theBankSchemeofTransferwouldnotberecognised.Stepsmayneedtobetaken,dependingontherelevantgoverninglaw,inordertoassignornovatethesecontractsoutsidetheBankSchemeofTransferprocess.Similarly,aBankSchemeofTransfermaynotbeeffectivetotransferassetslocatedoutsideIreland.
ThereisnoCourtprocess,whichreducescostsandtherelatedimpactontiming.
Adisadvantageisthetimelineassociatedwiththisprocess.Documentationmustbefinalisedatleastfivemonthspriortotheproposedtransferdate.
ThereissomedebateastotheextentofassetswhichmaybetransferredunderaBankSchemeofTransfer,however,theDepartmentofFinanceandtheCentralBankhaveapprovedBankSchemesofTransferwheretheassetsandbusinessesincludedwerenotspecificallyreferencedinthe1971Act.
The1971ActhasbeenamendedtoprovidespecificallyforBankSchemesofTransferswhich,intheopinionoftheMinister,areintendedto“preserveorrestorethefinancialpositionofthetransferorortransferee”.Theprocessunderthe1971Acthasbeenadaptedtoapplyinthatsituation.ThechangeswereintroducedundertheCreditInstitutions(Stabilisation)Act2010andwerepartofthemeasurestodealwiththeIrishbankingcrisis.
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CompaniesAct2014
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InadditiontothemechanismsformergingfinancialbusinessesdescribedpreviouslyinthisGuide,the2014Actincludesthefollowingprocedureswhichmaybeusefulwhenimplementingsuchtransactionsorre-organisations.
Divisions of Private Companies
The2014Actprovidesforthedivisionofprivatecompanies.Ina“divisionbyacquisition”twoormorecompaniesacquirebetweenthemalltheassetsandliabilitiesofanothercompanyinexchangeforsharesinthosecompanieswithorwithoutanaccompanyingcashpayment.Thetransferringcompanyisdissolvedwithoutgoingintoliquidation.Ina“divisionbyformationofnewcompanies”,thesameprocessisfollowedsavethattheacquiringcompaniesarenewlyformed.
Thedivisionprocessissimilartothemergerprocessunderthe2014Act,howevertheSAPwhichisavailableforthepurposesofmergingIrishprivatecompanies,maynotbeemployedforthepurposesofadivisionofacompany.
Commondrafttermsofdivisionand,incertaincases,adirectors'explanatoryreportandanexpert'sreporttoshareholdersmustbeprovided.EachcompanyinvolvedinthedivisionmustpassspecialresolutionsapprovingthedivisionandthedivisionmustthenalsobeconfirmedbytheHighCourt.
Share Capital Reduction
WhenimplementingthedifferenttypesofmergerreferredtointhisGuide,itmaybedesirableornecessarytoreduceacompany'ssharecapital.UnderthepriorCompaniesActs,acapitalreductionrequiredashareholderresolutionwhichwasconfirmedbyCourtorder.The2014Actintroducedasimplifiedprocessforcompanies(otherthanplcs)toeffectacapitalreductionnamely,theSAP.
The2014ActalsomodifiedtheCourtprocessbyshiftingthetimingoftheadvertisementofthereduction.
TheCourtprocessremainsrelevantforplcsassuchcompanieswillnotbeabletoavailoftheSAPtoeffectacapitalreductionanditstillopentoallcompaniestofollowtheCourtprocessinsteadofavailingoftheSAP(ifpreferable).
UsingtheSAPtoimplementacapitalreductionrequires:
(a) adeclarationofsolvencyinrespectofthecompanytobeswornbyitsdirectors/amajorityofitsdirectors;
(b) areportofapersonwhoisqualifiedtobethecompany'sstatutoryauditorwhichwouldstatewhether,inthatperson'sopinion,thedirectors'declarationisnotunreasonable;and
(c) theapprovalofaspecialresolutionofshareholders(75%threshold).
CompaniesAct2014
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22
Variation of Capital on Reorganisation
The2014Actincludesprovisionswherebyacompanymaytransferordisposeofassetsand/orliabilitiesorundertakingstoatransfereecompanyinexchangeforsecuritiesinthetransfereecompanybeingallottedtomembersofthecompanyoritsholdingcompany(ratherthanthecompanyitself).Suchatransactionwaspreviouslyregardedasadistributionwhichwasrequiredtobesupportedbydistributablereserves.Ifsuchreserveswereunavailablethenthetransactionconstitutedaformofcapitalreduction.Aswithacapitalreduction,suchavariationiscapableofbeingimplementedbyusingtheSAPasoutlinedabove(unlesstherelevantcompanyisaplc)orbyfollowingtheCourtprocesswhichisidenticaltotheCourtprocessinrespectofacapitalreduction.
CompaniesAct2014
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23ComparativeAnalysisTable
SchemeCross-BorderMerger
PrivateCompanyMerger
Division(PrivateCompany)
PLCMerger
InsurancePortfolioTransfer
ReinsurancePortfolioTransfer
BankSchemeof Transfer
5 36613078.1
Legallyeffective throughoutEU/EEA.
Notnecessarily.DueDiligencerequired.
Notnecessarily.DueDiligencerequired.
Notnecessarily.DueDiligencerequired.
Notnecessarily.DueDiligencerequired.
Notnecessarily.DueDiligencerequired.
Yes.
Yes.
Yes.
Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes.
Yes. Yes. Yes. Yes.
Yes. Yes. Yes.No. No. No. No.
No. No.
Yes.
Yes butsomequestionmarks overIrish process.
PartialTransferspossible.
CourtApplicationrequired.
Only ifSAP notavailed of.
Effectiveto mergeany typeof asset.
Yes,apart frominsurancebusiness.
Yes,apart frominsurancebusiness.
Yes,apart frominsurancebusiness.
Yes,apart frominsurancebusiness.
Yes,apart frominsurancebusiness.
Onlyinsurancebusiness
Onlyreinsurancebusiness.
Some doubtabout theambit of this.
Can Changeof Controlclauses betriggered?
03.0
3.16