Companies Act 2014 section 1087E

Disapplication of additional requirement

Section 1087E removes an additional condition that would otherwise need to be met before an offeror can exercise a compulsory buy-out right, where the takeover offer involves the capital of a relevant issuer that is the target company.

• This section applies where a takeover scheme, contract, or offer under section 457 is made in the capital of a relevant issuer that is the target (offeree) company.
• In such cases, the additional requirement set out in section 458(3) does not need to be satisfied for the offeror to exercise the right to compulsorily buy out dissenting shareholders.
• The terms "offeree company", "offeror", and "relevant scheme, contract or offer" carry the same meanings as defined in section 457(1).
• This provision was introduced by the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2020 to address Brexit-related consequences for company acquisitions.