Changes To Merger Reporting Requirements

The reporting requirements on company mergers and demergers have been relaxed with effect from 31 December 2010.

The changes implement EU merger rules by exempting merging/demerging companies from the need to provide certain documents and information to shareholders when it doesn't prejudice their rights and interests to do so.

When all shareholders of the merging/demerging companies agree, companies no longer have to provide:

• the report of the managing bodies about the merger/demerger terms, particularly the share exchange ratio
• accounting statements for the month before the date of the draft merger/demerger agreement/plan
• information from the managing bodies about material changes in assets/liabilities between the date of the merger/demerger report/agreement and the date of the general meeting to vote on the merger