The Takeovers Panel has issued a Guidance Note on Schemes of arrangement and amalgamations under Part 15 of the Companies Act 1993.

The guidance outlines the Panel's role and explores the different aspects of Part 15 schemes.

The Panel says it views schemes as a legitimate and valuable means for undertaking corporate transactions in New Zealand.

"The ability to carry out corporate transactions under a Companies Act process, rather than under the Code, provides economically sensible commercial flexibility."

It says it encourages potential applicants for a no-objection statement to undertake early engagement with the Panel executive.

"The Panel will consider specific questions prior to an application for a no-objection statement. The Panel executive are happy to discuss draft proposals and review early drafts of documents on a confidential basis, in much the same way as the Panel executive review draft Code transaction documents."