New Rights For Pension Scheme Trustees Under The Takeover Code

Keywords: new rights, pension scheme trustees, Takeover Code

In July last year, the Code Committee of the Takeover Panel (Panel) issued a consultation paper dealing with pension scheme trustee issues. The Panel has now published its response to the consultation, together with the detailed rule changes. Broadly, the provisions relating to the employee representatives introduced to the Takeover Code in September 2011 will be extended to the trustees of the target's pension scheme(s). Other new provisions are also being introduced, including in relation to future funding agreements.

The intention behind the consultation is to help ensure the effects of an offer on a pension scheme can be discussed by the relevant parties at an early stage, so that any issues which might arise as a consequence of the potential change of control can be considered by the target shareholders and others. Most of those who responded to the consultation were in favour of the