The Companies (Amendment) Law 2009 came into force in the Cayman Islands on 11 May 2009. The new law introduces Part XVA to the Companies Law (2007 Revision) to provide an additional means of effecting mergers and consolidations of Cayman Islands companies (except segregated portfolio companies) and Cayman companies and foreign companies if the merged company or consolidated company will continue to be a Cayman Islands company.

The only mechanism available under the Companies Law (2007 Revision) for a merger was a special scheme of arrangement to facilitate an amalgamation or reconstruction under ss 86 and 87 of that law. Court-approved schemes of arrangement involving an amalgamation or reconstruction will continue to be available.

Merger and consolidation

Merger means the merging of two or more constituent companies into a sole remaining constituent company (the surviving company) and the vesting of the assets and liabilities of the constituent companies in the surviving company. Consolidation means the combination of two or more constituent companies into a new consolidated company and the vesting of the undertaking, property and liabilities of the constituent companies in the consolidated company. The cessation of a constituent company which participates in a consolidation or which is not the surviving company in a merger does not require a winding-up.

The essential difference between a merger and a consolidation is that a merger results in one of the constituent companies being the surviving company as the other constituent company is merged into it whereas a consolidation results in a new consolidated company distinct from either of the constituent companies.

Procedure and consent requirements
Directors

The directors of each constituent company must approve a written plan of merger or consolidation (the Plan). The Plan must contain certain prescribed information including the basis of converting the shares in each constituent company into shares of the consolidated company or surviving company and the rights attached thereto, any proposed amendments to the memorandum and articles of the surviving company in a merger, or the proposed new memorandum and articles of the consolidated company in a consolidation and details of all secured creditors.

Shareholders
The Plan must be approved by the shareholders of each constituent company by either:
(a) a majority in number representing 75% in value of the shareholders voting together as one class; or
(b) a special resolution of the shareholders voting together as one class if the shares to be issued to each shareholder in the consolidated company or in the surviving company are to have the same rights and economic value as the shares held in the constituent company.

Shareholders do not need to approve a merger between a Cayman parent company and a Cayman subsidiary. For this purpose, a subsidiary is a company of which at least 90% of the issued shares entitled to vote are owned by the parent company.

Secured creditors
The consent of each holder of a fixed or floating security interest over a constituent company is required unless this requirement is waived by the Grand Court.

Other consents
Other consents and filings may be required, for example, under the Banks and Trust Companies Law, Securities Investment Business Law, Mutual Funds Law or Insurance Law.

Filings
The Plan must be filed with the Registrar of Companies, together with supporting documents including a declaration (i) of solvency (debts as they fall due), (ii) that the merger or consolidation is bona fide and not intended to defraud unsecured creditors of the constituent companies, (iii) of the assets and liabilities of each constituent company, (iv) that no proceedings are outstanding and that no order has been made or resolution passed to wind up the constituent company or to appoint a receiver, trustee or administrator in any jurisdiction, (v) that no scheme, order, compromise or arrangement has been made in any jurisdiction whereby the rights of creditors have been suspended or restricted and an undertaking that a copy of the certificate of merger or consolidation will be given to members and creditors of the constituent company and published in the Cayman Islands Gazette.

Certificate of merger or consolidation
A certificate of merger or consolidation is issued by the Registrar of Companies which is prima facie evidence of compliance with all statutory requirements in respect of the merger or consolidation.

Effective date
The effective date of a merger or consolidation is the date the Plan is registered by the Registrar of Companies, although the Plan may provide for an effective date up to 90 days after the date of registration.

Dissentient shareholders

A dissentient shareholder of a Cayman constituent company is entitled to payment of the fair value of his shares upon dissenting to a merger or consolidation unless (i) an open market on a recognised stock exchange or interdealer quotation system exists for the shares at the end of the dissent period (see below), and (ii) the merger or consolidation consideration consists of shares of the surviving or consolidated company or depository receipts in respect thereof, shares or depository receipts of any other company which are listed on a national securities exchange or designated as a national market system security on a recognised interdealer quotation system or held of record by more than 2000 holders on the effective date of the merger or consolidation, cash in lieu of fractional shares or depository receipts. The exercise of appraisal rights will preclude the exercise of any other rights save for the right to seek relief on the grounds that the merger or consolidation is void or unlawful. It would seem the effect of the provisions is that minority shareholders owning 10% or less of the voting shares in a Cayman subsidiary which proposes to merge with its Cayman 90% parent do not have appraisal rights.

The following procedure will otherwise apply:

1. The dissentient shareholder must give written notice of objection (notice of objection) to the constituent company before the vote to approve the merger or consolidation.

2. Within 20 days of the vote approving the merger or consolidation, the constituent company must give written notice of the approval (approval notice) to all dissentient shareholders who served a notice of objection.

3. Within 20 days (dissent period) of the approval notice a dissentient shareholder must give a written notice of dissent to the constituent company demanding payment of the fair value of his shares.

4. Within seven days of the expiry of the dissent period or within seven days of the date on which the plan of merger or consolidation is filed with the Registrar of Companies (whichever is later), the constituent company, surviving company or consolidated company must make a written offer (fair value offer) to each dissentient shareholder to purchase their shares at a price determined by the company to be their fair value.

5. If the company and the dissentient shareholders fail to agree the price within 30 days of the fair value offer (negotiation period), then within 20 days of the expiry of the negotiation period the company must apply to the Grand Court to determine the fair value of the shares held by all dissentient shareholders who have served a notice of dissent and who have not agreed the fair value with the company.

Effect of a merger or consolidation

All rights, benefits, immunities, privileges and property (including business and goodwill) of each of the constituent companies will vest in the surviving or consolidated company which will be liable for all debts, contracts, obligations, mortgages, charges, security interests and liabilities of each constituent company. Existing claims, proceedings, judgments, orders or rulings applicable to each constituent company will automatically apply to the surviving company or the consolidated company.

David M Lamb
Partner
Conyers Dill & Pearman
david.lamb@conyersdillandpearman.com

 開曼群島的新合併法規之扼要陳述
David Lamb談論與合併有關的開曼群島公司法修訂的主要特色以及股東的相關權利。

 開曼群島的《2009年公司(修訂)法》於2009年5月11日起生效。該新法例是在《公司法(2007年修訂)》中加進第XVA部，為開曼群島公司(獨立投資組合公司除外)及開曼公司和外國公司的合併和整合的實施提供一個額外途徑(假如該等合併公司或整合公司是繼續作為開曼群島公司的話)。

在《公司法(2007年修訂)》下提供的唯一合併機制，乃一個特別的重組安排計劃，以進行在該法例的第86條和第87條下的合併或重整。經法庭批准的
涉及合併或重整的重組安排計劃將會繼續實行。

合併和整合

合併指兩家或以上的成員公司進行合併，成為唯一餘下的成員公司(留存公司)，而各成員公司的資產 和負債皆歸屬該留存公司。整合指兩家或以上的成員公司結合成為一家新的整合公司，而各成員公司的業務、財產和負債皆歸屬該整合公司。一家參與整合的，或是在一項合併中，本身並非作為留存公司的成員公司，其結束並不需要經過清盤程序。

合併與整合的主要區別在於，合併需要其中一個成員公司作為留存公司，而另一個成員公司則併入於它；整合則需要成立一家新的，與當中的任何一
個成員公司有所區別的整合公司。

程序及同意規定
董事
各成員公司的董事均必須同意通過一項合併或整合的書面計劃(以下簡稱該計劃)。該計劃必須載有若干規定的資料，包括將各成員公司的股份轉換成為
整合公司或留存公司的股份的依據以及所附有的權利，對合併後的留存公司的組織章程大綱和章程細則的任何修訂建議，或是對整合後的整合公司的新
組織章程大綱和章程細則的建議，以及關於所有有抵押債權人的詳情。

股東
該計劃必須獲得各成員公司的股東按以下其中一種方式通過：

(a) 獲得相當於百分之七十五價值的大多數股東在同一個股東類別中表決通過；或
(b) 在同一個股東類別中，獲得股東以特別決議方式表決通過，假如向整合公司或留存公司的每一位股東所發行的股份，與其所持有的成員公司股份，在享有的權利和經濟價值方面是相同的話。

一家開曼母公司和一家開曼子公司所進行的合併，並不需要股東同意通過。就這一點而言，一家子公司乃指一家公司，它的至少百分之九十具投票權的已發行股份是由其母公司所擁有。

有抵押債權人
除非獲得大法院免除有關的規定，否則必須獲得每一名持有成員公司的固定或浮動抵押權益的持有人之同意。

其他同意
根據例如《銀行及信託公司法》、《證券投資商業法》、《互惠基金法》或《保險法》等的規定，可能也需要獲得其他方面的同意和進行存檔。

存檔
有關計劃必須向開曼群島公司註冊處存檔，並連同各項支持文件，包括一份載有如下內容的聲明：(i)償債能力(到期債務)，(ii)該項合併或整合是真確的，並沒有存心欺詐各成員公司的無抵押債權人的意圖， (iii)各成員公司的資產和負債，(iv)並沒有任何未決的訴訟在任何司法管轄區中進行，也沒有任何將成員公司清盤，或是任命財產接管人、受託人或遺產管理人的命令被頒發或決議被通過，(v)並沒有任何計劃、命令、妥協或安排在任何司法管轄區中作出，使債權人的權利被中止或限制，並承諾向成員公司的股東及債權人提供一份合併或整合的證明書，以及於開曼群島的憲報上予以公布。

合併或整合證明書
開曼群島公司註冊處將會發出一份合併或整合證明書，而那是已遵循所有關於合併或整合之法定要求的表面證據。

生效日期
合併或整合的生效日期乃開曼群島公司註冊處為該計劃登記的日期，雖然該計劃可訂立一個達至登記日期之後90日內的生效日期。

持異議股東
一家開曼成員公司中的持異議股東，其在對一項合併或整合作出反對後，可有權獲得支付其股份的公平價值，除非(i)在異議期(見下文)的期末，存在有
關該等股份的認可證券交易所公開市場或是交易商同業報價系統，及(ii)該等合併或整合的對價乃包含該留存公司或整合公司的股份或其預託證券；於一個全國性證券交易所上市或是在一個認可交易商同報價系統中被指明為乃全國市場系統證券，或是於合併或整合的生效日期由超過2000名有記錄可查的持有人持有的任何其他公司股份或預託證券；代替零星股份的現金或預託證券。股份回購請求權的行使，將會排除對任何其他權利的行使，但是以合
併或整合屬於無效或不合法為由而尋求濟助的權利除外。該等規定的作用看來是，在一家建議與享有九成表決股份的開曼母公司進行合併的開曼子公司中擁有百分之十或以下表決股份的少數股東，他們並不享有股份回購請求權。

下列的程序將會另外適用：
1. 持異議股東必須在表決通過合併或整合前，向 成員公司提交反對通知書(反對通知書)。
2. 在表決通過合併或整合後的20天內，成員公司必須給所有送達反對通知書的持異議股東發出正式批准通知書(正式批准通知書)。
3. 持異議股東在正式批准通知書發出後的20天內(異議期)，必須向成員公司提交一份異議通知書，要求就其股份獲得支付公平價值。
4. 於異議期屆滿後的7天內，或是於合併或整合計劃向開曼群島公司註冊處存檔的日期起7天內(以較晚者為準)，成員公司、留存公司或整
合公司必須向每一名持異議的股東作出書面出價(公平價值出價)，並根據一個由公司釐定的價格(作為股份的公平價值)收購他們的股份。
5. 假如於出價後的30天內(商議期)，公司與持異議股東仍未能就公平價值達成協議，那麼於商議期屆滿後的20天內，公司必須向大法院提出
申請，要求由大法院來為所有送達了異議通知書，且未能與公司就公平價值達成協議的持異議股東所持有的股份釐定其公平價值。

合併或整合的作用

各成員公司的所有權利、利益、豁免權、特權及財產(包括業務和商譽)將會歸屬於留存公司或整合公司，而該留存公司或整合公司將會對各成員公司的
所有債務、合約、義務、揭按、押記、抵押權益及負債等承擔責任。適用於各成員公司的現行申索、法律程序、判決、命令或裁決，亦將會自動適用於該留存公司或整合公司。

David M Lamb
Partner
Conyers Dill & Pearman
david.lamb@conyersdillandpearman.com