Open AccessCORPORATE LAW: MANDATORY OFFER REGIME IN NEED OF PRECISE EXEMPTIONS AND LEEWAY
Author(s) -
Paul Nkoane
Publication year - 2016
Publication title -
obiter (port elizabeth. online)/obiter (port elizabeth)
Language(s) - English
Resource type - Journals
eISSN - 2709-555X
pISSN - 1682-5853
DOI - 10.17159/obiter.v37i1.11562
Subject(s) - business , database transaction , law and economics , law , accounting , computer security , economics , computer science , political science , programming language
Mandatory offers are generally envisioned to curb unfair and abusive conduct during and after acquisition of securities in a regulated company. The regime is designed to offer minorities an opportunity to exit the company during takeovers. Mandatory offers are formulated to regulate all acquisitions in the range of the prescribed percentage. Only where the Panel exempts an offeror will the transaction not be covered by the rules of mandatory offers. In keeping with the purpose of theCompanies Act, this article is intended to indicate that clear and precise exemptions must form an integral component of this regime.