Which of the following is false regarding the merger process in South Africa?
A) Shareholders cannot approve a merger unless 50 percent of all shareholders vote to accept the offer.
B) Minority shareholders have access to South African courts and may employ them when disputes arise.
C) The Companies Act establishes a panel to inquire about mergers or takeovers.
D) The Companies Act and the rules of the Johannesburg Stock Exchange control mergers.
E) If a change of corporate control takes place outside the stock exchange, the initiator of the merger must extend the offer to the shareholders and disclose all pertinent information to them within a reasonable amount of time.

Question

Quizplus · Accepted Answer

In South Africa, the Companies Act requires a higher threshold for shareholder approval in mergers, typically a special resolution which requires at least 75% of the voting rights exercised on the resolution, not just 50%.

Which of the Following Is False Regarding the Merger Process