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Company Law Reform Bill [HL]

The amendment provides in terms that, where a notice of an application under Section 430C has not been served on the offeror by the expiry of the six-week period, Section 430(5) will have effect. The offeror will be required to proceed with the squeeze-out process, irrespective of whether a court application has been made. We understand and sympathise with the frustrations giving rise to this amendment. The offeror wishes to have certainty as to his position; otherwise, he may feel constrained to make searches of the companies court and the district registries to find out whether an application under Section 430C has been lodged. But we do not think that the best means of resolving that practical issue is by providing that the bidder be bound to proceed under Section 430(5), notwithstanding the fact that an application may have been lodged by the minority shareholder. However we appreciate the very real practical issues and will reflect on other means by which these concerns might be dealt with.