C1C2C3Part 27Mergers and divisions of public companies

Annotations:

Chapter 2Merger

Requirements applicable to merger

908Directors' explanatory report (merger)

1

The directors of each of the merging companies must draw up and adopt a report.

2

The report must consist of—

a

the statement required by section 897 (statement explaining effect of compromise or arrangement), and

b

insofar as that statement does not deal with the following matters, a further statement—

i

setting out the legal and economic grounds for the draft terms, and in particular for the share exchange ratio, and

ii

specifying any special valuation difficulties.

3

The requirement in this section is subject to section 915 (circumstances in which reports not required) F1, section 915A (other circumstances in which reports and inspection not required) and section 918A (agreement to dispense with reports etc)..