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20.5¢ resapp health limited

Okay, when looking at it in that light the consideration seems...

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scopeinn

90 Posts.

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17/06/22

23:26

Post #: 62067202
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Originally posted by TerribleTadpole: ↑

Bear in mind that Schemes of Arrangement are not only for takeovers. In fact they were original used for major transaction that would change the capital structure of the company or alter the nature of its operations. Schemes of Arrangement were often used as an alternative to liquidation for companies that needed to reach a settlement with creditors. So the legislation and the regulatory guidelines are very vague to allow for all the different circumstances where a scheme might be used. This is why there is so much oversight of the process:
ASIC have to be given two weeks to review the scheme booklet before the scheme can proceed to the next step. ASIC can raise objections and ask for changes.
A court has to approve the scheme before it can be sent to the members (i.e. shareholders in the case of a company).
If the members approve of the scheme, it has to go to court again for permission to proceed with implementation.

https://download.asic.gov.au/media/5799453/rg60-published-24-september-2020.pdf

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Okay, when looking at it in that light the consideration seems to be more understanding & reasonable.

Thanks for the clarification (& peace of mind) T.T.
RAP Price at posting: 17.5¢ Sentiment: Hold Disclosure: Held
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