The Court plays a supervisory role in the Scheme of Arrangement...

The Court plays a supervisory role in the Scheme of Arrangement process.

Included in ASIC’s role is the protection of the interest of shareholders. This includes reporting to the Court in any areas of objection that it is aware of.

It should object to the Scheme if it considers that it would deprive shareholders of the benefits or protections that exist with takeovers involving a bidding system (i.e. normal on-market or off-market takeovers).

Below are sections quoted from ASIC’s Regulatory Guide on Schemes of Arrangement that relate to ASIC lodging an objection.

RG 60.17
The primary question we will consider under s411(17)(b) is whether, having regard to the principles in s602, shareholders are adversely affected by the takeover being implemented by a scheme of arrangement rather than a takeover bid.

RG 60.19
Shareholders should, however, receive equivalent (although not necessarily identical) treatment and protection, whether an acquisition is made under a scheme of arrangement or by any other type of acquisition (including capital reductions). As long as these protections are equivalent in nature, we do not favour one legal method over another.

I would contend that that RG 60.17 and RG 60.19 have not been satisfied in this case, as commented on in my previous post.