|Is my transaction subject to the takeover regulations?|
|Securities in companies are transferred daily, including transfers of shares in so-called “shelf companies”. When parties enter into a transaction, it is important to be cognisant of the regulatory requirements set out in the Companies Act 71 of 2008 (“the Act”).
The Act came into effect on 1 May 2011 bringing about several changes in the laws regulating companies and, in some instances, the transactions involving companies or its securities. It is common cause that some changes were aimed at protecting minority shareholders in instances where companies are subject to specified transactions. Such changes included the introduction of the so-called “takeover regulations” and the establishment of the “Takeover Regulations Panel” or TRP.