The protection of shareholders and creditors in the context of takeovers and reorganisations under the Companies Act 71 of 2008

Abstract

Empirical research in the previous years has shown the history and the evolution of takeovers and mergers in South Africa. Many theories have emerged to show the advancement in the Companies Act 71 of 2008 (the new Act) from the old Companies Act 61 of 1973 especially on issues relating to takeovers and reorganisations. These include measures in the new Act that are designed to protect shareholders and creditors in the context of takeovers. Cassim and several other writers have provided insight into the changes brought about by the new Act with regards to the protection of shareholders and creditors. This research identifies the strengths and weaknesses of the measures introduced in the new Companies Act 71 of 2008 which protect the shareholders and creditors in the context of mergers and takeovers. This will be done through a critical analysis of the shareholder and creditor protective measures contained in the new Act and a comparative analysis of the takeover regulations in South Africa, the United States of America and the United Kingdom.