Mergers and acquisitions (M&A) are a feature of the corporate landscape. A common mechanism used to enable an M&A is the scheme of arrangement. The Scheme is a flexible tool used to effect a compromise or arrangement between the company and its shareholders.
A Scheme has three stages under the statutory framework prescribed in the Companies Act (Chapter 50 of Singapore) (Companies Act).
First, an application is made to the Singapore High Court (Court) for an order that a meeting of shareholders (Scheme Meeting) be summoned. The Court will typically sanction the voting arrangements of the Scheme Meeting (within the framework prescribed by the Companies Act) at this stage.
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