Part 9 – Reorganisations, Acquisitions, Mergers & Divisions

4 Chapters – Sections 449 to 507

Part 9 Chapter Overview

Chapter 1 – Schemes of arrangement

Chapter 2 – Acquisitions

Chapter 3 – Mergers

Chapter 4 – Divisions

Part 9 Summary

This Part sets down the law relating to reorganisations, acquisitions, mergers & divisions

What is new?

There is a new and comprehensive list of defined terms. It will be possible for the first time to effect a merger between two private Irish companies. This can be achieved without a High Court order under the SAP. The Act also provides for a division facility which is entirely new.

What is different?

Shortcomings in the procedures for schemes of arrangement have been identified and the new Act makes amendments to the procedure to enhance the regime. Amendments have also been made to the information that must be sent to creditors and members in the case of a scheme of arrangement.

What are the Key Points?

• Mergers legislated for
• Divisions legislated for
• Improvements made to schemes of arrangement

What do accountants need to do?

Familiarise themselves with the new procedures and identify opportunities for such transactions for their clients.

What do companies need to do?

Review their corporate structure and identify areas whereby the new procedures could be utilised to make their structure better fit for purpose.