Statement of reasons
This notice, which comes into force on 1 July 2007, amends the Takeovers Code (Class Exemptions) Notice (No 2) 2001 (the 2001 notice) as a result of changes made to the Takeovers Code (the Code) by the Takeovers Code Approval Amendment Regulations 2007 (the regulations), which also come into force on 1 July 2007. Clause 4 (which relates to a class exemption for a shareholder approved buyback) as amended requires certain documents, statements, and information to be copied to the Panel. Clause 26 is revoked as there will be no necessity for it when the regulations come into force.
The Panel considers that the amendment to clause 4 of the 2001 notice is appropriate and consistent with the objectives of the Code because—
•the shareholder approved buyback class exemption closely mirrors the shareholder approval mechanism set out in rules 7(c) and 15 of the Code:
•the amendment to the rule 7(c) shareholder approval mechanism under the regulations is substantially the same as the amendment to clause 4 of the 2001 notice:
•the shareholder approved buyback class exemption should continue to closely mirror all of the requirements of a shareholder meeting held for the purposes of rule 7(c) of the Code.