Two or more  profit companies including a holding and subsidiary companies may amalgamate or merge if upon implementation if the amalgamation or merger  will satisfy the liquidity and  solvency test

Scheme of arrangement


A scheme of arrangement is any  arrangement or agreement proposed by the board of directors and entered into between the company and holders of any class of its securities, including a re-organisation of the share capital of the company, by way of:

-a consolidation of securities of different classes

-a division of securities into different classes

-an expropriation of securities from the holders -exchanging any of its securities for other securities

-a re-acquisition by the company of its securities, or

-a combination of the methods contemplated above  


Squeeze out

•     A  compulsory acquisition is where an offeror attains 90% of any class of securities in a


•     The offeror may then notify the holders of the remaining securities of that class that he 

       wants to acquire the remaining shares

•      The offeror is then entitled and bound to acquire the  securities concerned on the same

       terms that applied to securities whose holders accepted the original offer