A critical analysis of the continued preference displayed towards schemes of arrangement in South Africa
Authors Jess Caitlyn Cameron
Affiliations: Associate, Cliffe Dekker Hofmeyr Attorneys Inc.
Source: Journal of Corporate and Commercial Law & Practice, The, Volume 2 Issue 2, 2016, p. 77 – 87
Ever since the introduction of the merger and amalgamation provision on 1 May 2011 by the South African Companies Act, 2008, public companies continue to sidestep this new mechanism as a means for effecting a takeover and, instead, continue to prefer the scheme of arrangement. There are a number of reasons why the continued use of the scheme of arrangement may be justified and this article investigates the plausibility of those reasons.