This Briefing explains the amendment to the Companies Act and other related laws, which was enacted on 20 June 2014, focusing on:
- share purchase demands, which are demands by shareholders that the company purchase their shares, in relation to business transfers and organisation restructuring (collectively, "Organisation Restructuring");
- requests for injunctions against Organisation Restructuring and;
- corporate splits.
The reform extensively amends the provisions of the current share purchase demand system with the aim of preventing the abusive exercise of share purchase demands. Moreover, the reform entrenches requests for injunctions against Organisation Restructurings in statute and sets out provisions to protect creditors from fraudulent company splits. The reform is expected to come into force by 1 April 2015.