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Section 942 of The Companies Act No. 17 of 2015: Protection of holders of securities to which special rights attached(merger)

    

(1) This section applies to securities of the transferor company (other than shares) to which special rights are attached.
(2) If a person holds securities to which this section applies otherwise than as a member or creditor of the company, the scheme is invalid unless it provides that the person is entitled to receive rights in a transferee company of equivalent value.
(3) Subsection (2) does not apply if—
(a) the holder of the securities has agreed otherwise;
(b) that holder is, or under the scheme is to be, entitled to have the securities purchased by a transferee company on terms that the Court considers fair and reasonable; or
(c) the Court has, on the application of the holder of the securities or the transferor company or the transferee company, made an order validating the scheme.

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Disclaimer: This document is not to be taken as legal advise.

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