Govt announces changes to Companies Act

Justice Minister Simon Power. Photo / Mark Mitchell

Parts of the Companies Act relating to schemes of arrangement and amalgamations for large companies will be amended to better align with the Takeovers Code regime, Commerce Minister Simon Power says.

When the changes are enacted, affected amalgamations will have to be done as schemes of arrangement, he said today.

In addition, companies will be required to gain a similar level of support from shareholders to approve a transaction as they would have to for a takeover to succeed under the Takeovers Code.

"These amendments will ensure we continue to have a credible and robust takeovers regime which investors can have confidence in," Mr Power said.

"Currently, shareholders are being asked to make significant decisions based on inadequate information."

- NZPA