The Takeovers Panel has issued a Guidance Note on Schemes of arrangement and amalgamations under Part 15 of the Companies Act 1993.

The Panel says it views schemes as a legitimate and valuable means for undertaking corporate transactions in New Zealand. It says the ability to carry out corporate transactions under a Companies Act process, rather than under the Takeovers Code, provides economically sensible commercial flexibility.

"The Panel encourages potential applicants for a no-objection statement to undertake early engagement with the Panel executive. The Panel will consider specific questions prior to an application for a no-objection statement. The Panel executive are happy to discuss draft proposals and review early drafts of documents on a confidential basis, in much the same way as the Panel executive review draft Code transaction documents."