By BRIAN FALLOW
The Takeovers Panel's newly reappointed chairman, John King, has no plans to step down as a director of Telecom, citing legal provisions preventing conflicts of interest.
Under legislation before Parliament's commerce select committee, the panel will be able to sit in divisions - temporary subcommittees of at least three members - to consider particular cases.
With a pool of eight panel members to draw on, that should be enough to avoid conflicts of interest, Mr King says.
The panel's role so far has been to draft the takeovers code. It is now working on a set of class exemptions to deal with unwitting breaches of the code. tFrom July 1, its focus will be on enforcing the code.
The Government is seeking expressions of interest from people wishing to serve on the panel.
"We need some people who have been close to the markets and we need some lawyers, because some meetings have to be chaired by a lawyer," Mr King said yesterday.
Existing panel members can reapply, but it is understood not all will want to serve again.
The panel is empowered to grant exemptions from the code, but Mr King emphasised that it would not do so where it would undermine the code's fundamental principles.
The panel's powers are wide. It can issue restraining orders, including orders which prevent buying and selling shares or exercising voting rights. It can require people to produce documents for its inspection, though the Law Society is seeking to have that power limited by professional privilege.
It can apply to the court for a range of orders including the disposal or forfeiture of shares, removal of voting rights, voiding agreements and payment of compensation.
Applications for membership close on March 7.
No conflict says takeovers chief
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