Takeover rules for certain non-listed firms have been changed in ways which one lawyer says will make it easier for them to raise money.
A non-listed company was previously subject to the Takeovers Code if it had 50 or more shareholders, which caught a number of firms whose shareholdings were mainly held by trusts.
Under the Takeovers Amendment Act 2012, Anderson Lloyd partner Anne McLeod says only firms that have 50 or more shareholders and 50 or more share parcels will have to comply with the code.
She says the changes are welcome, because the cost of complying with the code can be time-consuming and prohibitive, and it can deter capital being injected into a business.
But a company that undertakes a partial or full takeover and complies with the code before the transaction, and doesn't have at least 50 investors and share parcels after it will still be covered by the Code.