The Companies (Cross-Border Mergers) Regulations 2007

Made: 15th October 2007

Laid before Parliament: 16th October 2007

Coming into force: 15th December 2007

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PART 1 — GENERAL

Citation and commencement

1

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Meaning of “cross-border merger”

2

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Interpretation

3

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The Companies Act 2006

4

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Unregistered companies

5

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PART 2 — PRE-MERGER REQUIREMENTS

Court approval of pre-merger requirements

6

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Draft terms of merger

7

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Directors' report

8

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Independent expert's report

9

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Inspection of documents

10

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Power of court to summon meeting of members or creditors

11

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Public notice of receipt of registered documents

12

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Approval of members in meeting

13

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Approval of creditors in meeting

14

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Documents to be circulated or made available

15

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PART 3 — COURT APPROVAL OF CROSS-BORDER MERGER

Court approval of cross-border merger

16

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Consequences of a cross-border merger

17

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Copy of order to be provided to members

18

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Copy of order to be delivered to the registrar of companies

19

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Obligations of transferee company with respect to articles etc

20

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Notification of registration

21

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PART 4 — EMPLOYEE PARTICIPATION

CHAPTER 1 — APPLICATION OF THIS PART

Application of this Part

22

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CHAPTER 2 — MERGING COMPANIES AND THE SPECIAL NEGOTIATING BODY

Duty on merging company to provide information

23

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Complaint of failure to provide information

24

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The special negotiating body

25

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Composition of the special negotiating body

26

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Complaint about establishment of special negotiating body

27

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CHAPTER 3 — NEGOTIATION OF THE EMPLOYEE PARTICIPATION AGREEMENT

Negotiations to reach an employee participation agreement

28

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The employee participation agreement

29

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Decisions of the special negotiating body

30

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Decision not to open or to terminate negotiations

31

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Complaint about decisions of special negotiating body

32

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CHAPTER 4 — ELECTION OF UNITED KINGDOM MEMBERS OF THE SPECIAL NEGOTIATING BODY

Ballot arrangements

33

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Conduct of the ballot

34

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Representation of employees

35

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CHAPTER 5 — STANDARD RULES OF EMPLOYEE PARTICIPATION IN A UK TRANSFEREE COMPANY

Merging Companies may select standard rules of employee participation

36

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Application of the standard rules

37

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The standard rules of employee participation

38

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Limit on level of employee participation

39

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Subsequent domestic mergers

40

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CHAPTER 6 — CONFIDENTIAL INFORMATION

Duty of confidentiality

41

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Withholding of information by the transferee or merging company

42

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CHAPTER 7 — PROTECTION FOR EMPLOYEES AND MEMBERS OF SPECIAL NEGOTIATING BODY, ETC.

Right to time off for members of special negotiating body, etc.

43

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Right to remuneration for time off under regulation 43

44

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Right to time off: complaints to employment tribunals

45

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Unfair dismissal of employee

46

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Unfair dismissal of member of special negotiating body, etc.

47

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Subsidiary provisions relating to unfair dismissal

48

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Detriment

49

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Detriment for member of special negotiating body, etc.

50

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Detriment: enforcement and subsidiary provisions

51

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Conciliation

52

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CHAPTER 8 — COMPLIANCE AND ENFORCEMENT

Disputes about operation of an employee participation agreement or the standard rules of employee participation

53

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Misuse of procedures

54

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Penalties

55

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Exclusivity of remedy

56

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CHAPTER 9 — MISCELLANEOUS

CAC proceedings

57

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Appeal Tribunal: location of certain proceedings under these Regulations

58

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Appeal Tribunal: appeals from employment tribunals

59

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ACAS

60

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Restrictions on contracting out: general

61

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Restrictions on contracting out: Chapter 7 of this Part

62

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Amendments to the Employment Act 2002

63

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Amendments to the Employment Appeal Tribunal Rules 1993

64

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PART 5 — AMENDMENTS TO LEGISLATION ON INSOLVENCY

Insolvency Act 1986

65

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Insolvency (Northern Ireland) Order 1989

66

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SCHEDULE 1 — Transitional modifications where provisions of Companies Act 2006 not in force

Regulation 3(1)

1

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Regulation 4

2

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Regulations 7 and 20

3

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Regulation 9

4

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Regulations 12 and 19

5

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Regulation 40

6

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SCHEDULE 2 — Application of the Regulations in relation to Northern Ireland

1

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2

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3

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4

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5

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6

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7

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8

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9

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10

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11

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12

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13

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14

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15

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16

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17

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18

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19

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20

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21

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Signed

Stephen Timms — Minister of State for Competitiveness, — 2007-10-15

Explanatory note

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Footnotes

[^f00001]: 1972 c.68. The enabling powers of section 2(2) were extended by virtue of the amendment of section 1(2) by section 1 of the European Economic Area Act 1993 (c.51).

[^f00002]: S.I. 2007/193.

[^f00003]: S.I. 2000/738.

[^f00004]: 2006 c.46.

[^f00005]: 1996 c.18.

[^f00006]: OJ L 310, 25.11.2005, p. 1. The Directive extends to the European Economic Area by virtue of Decision of the EEA Joint Committee No. 127/2006 of 22 September 2006 amending Annex XXII (Company law) to the EEA Agreement (OJ L 333, 30.11.2006, p. 59).

[^f00007]: OJ L 65, 14.3.1968, p. 8. The Directive has been amended on a number of occasions, but the only amendments relevant to the United Kingdom are those made by Directive 2003/58/EC of the European Parliament and of the Council of 15 July 2003 (OJ L 221, 4.9.2003, p. 13).

[^f00008]: 2006 c.46.

[^f00009]: S.I. 2007/2194 (C. 84).

[^f00010]: 2006 c.46.

[^f00011]: 2006 c.46.

[^f00012]: 2006 c.46.

[^f00013]: Section 43A was inserted into the 1996 Act by the Public Interest Disclosure Act (c.23), section 1.

[^f00014]: Section 105 has been amended on a number of occasions to specify additional circumstances in which an employee dismissed by reason of redundancy is to be regarded as unfairly dismissed.

[^f00015]: Section 108(1) was amended by S.I. 1999/1436, article 3.

[^f00016]: Section 108(3) has been amended on a number of occasions to specify additional cases in which no qualifying period of employment is required.

[^f00017]: Subsection (3) was amended by the Employment Rights (Dispute Resolution) Act 1998 (c.8), section 1(2)(a).

[^f00018]: 1996 c.17. Section 18(1) has been amended on a number of occasions to specify additional proceedings and claims to which the section applies.

[^f00019]: Section 21(1) has been amended on a number of occasions to specify additional proceedings and claims to which the section applies.

[^f00020]: 1990 c.41.

[^f00021]: 2002 c.22.

[^f00022]: S.I. 1993/2854.

[^f00023]: 1986 c.45. Schedule B1 was inserted by section 248(2) of, and Schedule 16 to, the Enterprise Act 2002 (c.40).

[^f00024]: S.I. 1989/2405 (N.I. 19). Schedule B1 was inserted by Article 3(2) of, and Schedule 1 to, the Insolvency (Northern Ireland) Order 2005 (S.I. 2005/1455 (N.I. 10)).

[^f00025]: 1985 c.6.

[^f00026]: S.I. 1986/1032 (N.I. 6).

[^f00027]: Section 744 has been amended on a number of occasions, but none of the amendments are relevant to these Regulations.

[^f00028]: Article 2 has been amended on a number of occasions, but none of the amendments are relevant to these Regulations.

[^f00029]: Section 162A was inserted by regulation 3 of the Companies (Acquisition of Own Shares) (Treasury Shares) Regulations 2003 (S.I. 2003/1116).

[^f00030]: Article 172A was inserted by regulation 3 of the Companies (Acquisition of Own Shares) (Treasury Shares) Regulations (Northern Ireland) 2004 (S.R. 2004/275).

[^f00031]: Section 730A was inserted by paragraph 13 of Schedule 4 to the Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194 (C. 84)).

[^f00032]: Article 678(5) was amended by Article 78 of and paragraph 16 of Schedule 5 to the Companies (No. 2) (Northern Ireland) Order 1990 (S.I. 1990/1504 (N.I. 10)).

[^f00033]: Section 731 was amended by the Criminal Procedure (Consequential Provisions) (Scotland) Act 1995 (c.40), section 5 and Schedule 4, paragraph 56(3).

[^f00034]: Article 679 was amended by regulation 4 of and Part I of Schedule 2 to the Limited Liability Partnerships Regulations (Northern Ireland) 2004 (S.R. 2004/307).

[^f00035]: Section 732(3) was amended by the Companies (Audit, Investigations and Community Enterprise) Act 2004 (c.27), section 25 and Schedule 2, paragraphs 16 and 22(c).

[^f00036]: Article 680(3) was amended by regulation 4 of and Part I of Schedule 2 to the Limited Liability Partnerships Regulations (Northern Ireland) 2004 (S.R. 2004/307).

[^f00037]: Section 734 has been amended on a number of occasions, most recently by the Companies (Audit, Investigations and Community Enterprise) Act 2004 (c.27), section 25 and Schedule 2, paragraphs 5 and 9(a).

[^f00038]: Article 680B was amended by regulation 4 of and Part I of Schedule 2 to the Limited Liability Partnerships Regulations (Northern Ireland) 2004 (S.R. 2004/307) and by sections 11 and 25 of and Schedule 2 to the Companies (Audit, Investigations and Community Enterprise) Act 2004 (c.27).

[^f00039]: 1989 c.40.

[^f00040]: S.I. 1990/593 (N.I. 5).

[^f00041]: Section 425 has been amended on a number of occasions, most recently by the Enterprise Act 2002 (c.40), section 248(3) and Schedule 17, paragraphs 3 and 5.

[^f00042]: Article 418 has been amended on a number of occasions, most recently by Regulation 4 of and Part I of Schedule 2 to the Limited Liability Partnerships Regulations (Northern Ireland) 2004 (S.R. 2004/307).

[^f00043]: Section 427A was inserted by regulation 2(a) of and the Schedule to the Companies (Mergers and Divisions) Regulations 1987 (S.I. 1987/1991) and has been amended on a number of occasions, most recently by the Enterprise Act 2002 (c.40), section 248(3) and Schedule 17, paragraphs 3 and 6.

[^f00044]: Article 420A was inserted by regulation 3 of the Companies (Mergers and Divisions) Regulations (Northern Ireland) 1987 (S.R. 1987/442) and has been amended on a number of occasions, most recently by Article 3(3) of and paragraph 15 of Schedule 2 to the Insolvency (Northern Ireland) Order 2005 (S.I. 2005/1455 (N.I. 10)).

[^f00045]: S.I. 1996/1919 (N.I. 16). Article 137 has been amended on a number of occasions to specify additional circumstances in which the employee dismissed by reason of redundancy is to be regarded as unfairly dismissed.

[^f00046]: Article 140(1) was amended by S.R. 1999/277.

[^f00047]: Article 140(3) has been amended on a number of occasions to specify additional cases in which no qualifying period of employment is required.

[^f00048]: S.I. 1996/1921. Article 20(1) has been amended on a number of occasions to specify additional proceedings and claims to which the Article applies.

[^f00049]: S.I. 2003/3902.

[^f00050]: S.I. 1996/1919 (N.I. 16).

[^f00051]: S.I. 1992/807 (N.I. 5).

[^f00052]: S.I. 1996/ 1921 (N.I. 18).

[^f00053]: OJ L 310, 25.11.2005, p. 1. The Directive extends to the European Economic Area by virtue of Decision of the EEA Joint Committee No. 127/2006 of 22 September 2006 amending Annex XXII (Company law) to the EEA Agreement (OJ L 333, 30.11.2006, p. 59).

Editorial notes

[^key-a041ded869f4c2b47e1569af0869a57e]: Regulations revoked (31.12.2020) by The Companies, Limited Liability Partnerships and Partnerships (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/348), regs. 2, 5(a); 2020 c. 1, Sch. 5 para. 1(1)

Circumstances in which independent expert’s report not required

9A

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Inspection of documents

Power of court to summon meeting of members or creditors

Public notice of receipt of registered documents

Publication of draft terms of merger on company website

12A

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Approval of members in meeting

Approval of creditors in meeting

Documents to be circulated or made available

Extension of time limit to facilitate conciliation before institution of proceedings

45A

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Unfair dismissal of employee

Unfair dismissal of member of special negotiating body, etc.

Subsidiary provisions relating to unfair dismissal

Detriment

Detriment for member of special negotiating body, etc.

Detriment: enforcement and subsidiary provisions

Conciliation

6A

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