Effecting Compulsory Acquisition via the Amalgamation Procedure in Singapore

Sections 215A to 215J of the Companies Act were enacted to facilitate the amalgamation or merger of Singapore companies. These provisions also enable an acquiror to achieve full ownership of the target company by indirectly buying out the shares held by minority shareholders, even if such shareholde...

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Main Author: WAN, Wai Yee
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2007
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Online Access:https://ink.library.smu.edu.sg/sol_research/791
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spelling sg-smu-ink.sol_research-17902010-09-21T08:36:04Z Effecting Compulsory Acquisition via the Amalgamation Procedure in Singapore WAN, Wai Yee Sections 215A to 215J of the Companies Act were enacted to facilitate the amalgamation or merger of Singapore companies. These provisions also enable an acquiror to achieve full ownership of the target company by indirectly buying out the shares held by minority shareholders, even if such shareholders have voted against the amalgamation at the shareholders' meeting. This author argues that the amalgamation procedure, as compared with the other forms of compulsory acquisition, may have the unintended effect of unduly favouring the majority shareholders at the expense of the minority shareholders. The problem is partially mitigated by the fact that the provisions allow for shareholders to apply to the court for relief if the amalgamation would lead to unfair prejudice. Alternatively, shareholders may bring a petition under section 216 of the Companies Act, on the ground that the amalgamation is oppressive, unfairly discriminatory or otherwise prejudicial to their interests. This article explores the circumstances in which the court would intervene and it is argued that the basis of any intervention is to ensure that the requisite shareholder approval is fairly obtained. 2007-12-01T08:00:00Z text https://ink.library.smu.edu.sg/sol_research/791 Research Collection Yong Pung How School Of Law eng Institutional Knowledge at Singapore Management University Acquisitions and mergers shareholder approval litigation Singapore Asian Studies Business Organizations Law Commercial Law
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Acquisitions and mergers
shareholder approval
litigation
Singapore
Asian Studies
Business Organizations Law
Commercial Law
spellingShingle Acquisitions and mergers
shareholder approval
litigation
Singapore
Asian Studies
Business Organizations Law
Commercial Law
WAN, Wai Yee
Effecting Compulsory Acquisition via the Amalgamation Procedure in Singapore
description Sections 215A to 215J of the Companies Act were enacted to facilitate the amalgamation or merger of Singapore companies. These provisions also enable an acquiror to achieve full ownership of the target company by indirectly buying out the shares held by minority shareholders, even if such shareholders have voted against the amalgamation at the shareholders' meeting. This author argues that the amalgamation procedure, as compared with the other forms of compulsory acquisition, may have the unintended effect of unduly favouring the majority shareholders at the expense of the minority shareholders. The problem is partially mitigated by the fact that the provisions allow for shareholders to apply to the court for relief if the amalgamation would lead to unfair prejudice. Alternatively, shareholders may bring a petition under section 216 of the Companies Act, on the ground that the amalgamation is oppressive, unfairly discriminatory or otherwise prejudicial to their interests. This article explores the circumstances in which the court would intervene and it is argued that the basis of any intervention is to ensure that the requisite shareholder approval is fairly obtained.
format text
author WAN, Wai Yee
author_facet WAN, Wai Yee
author_sort WAN, Wai Yee
title Effecting Compulsory Acquisition via the Amalgamation Procedure in Singapore
title_short Effecting Compulsory Acquisition via the Amalgamation Procedure in Singapore
title_full Effecting Compulsory Acquisition via the Amalgamation Procedure in Singapore
title_fullStr Effecting Compulsory Acquisition via the Amalgamation Procedure in Singapore
title_full_unstemmed Effecting Compulsory Acquisition via the Amalgamation Procedure in Singapore
title_sort effecting compulsory acquisition via the amalgamation procedure in singapore
publisher Institutional Knowledge at Singapore Management University
publishDate 2007
url https://ink.library.smu.edu.sg/sol_research/791
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