blocking a scheme of arrangement, page-2

This is Mr Lincoln Augustus, first second cousin of Holymagiman

Holymagiman has just pointed out to me that not everyone may understand what a scheme of arrangement is. I suppose he has a point there and that he may be right.

So, in an effort to make things clearer, and to inform those who may not know, I would like to direct you to:

http://www.mondaq.com/australia/article.asp?articleid=79840

I would like to draw your attention to the following points in this most informative link:

1. Schemes of arrangement are commonly used mechanisms under the Corporations Act 2001 to acquire listed companies or restructure corporate groups. There are two principal structures that can be used to acquire all the voting shares in a public listed company - a takeover bid under Chapter 6 of the Corporations Act or a scheme of arrangement under Chapter 5 of the Corporations Act. In the listed public company sector, schemes of arrangement are increasingly being used instead of takeover bids to achieve a change of corporate control.

2. A scheme may also be used to transfer the undertaking, assets and liabilities of a company to a new company on the terms that shares in the old company will be cancelled and shares in the new company will be allotted to former holders in proportion to their former holdings.

3. Alternatively a scheme can be used to bring about an amalgamation by which several companies transfer their respective assets to a new company or to an existing company in return for the transferee company allotting its shares or debentures to the members or debenture holders of each transfer or company.

So now, everyone knows what we in the family know, which, in the scheme of things, is really not very much.

But assuredly, what we don't know, the Lord surely knows, and so we leave you with the blessing of the Lord
MLA