1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

Showing 2 terms

Scheme of arrangement

Regulation & tax

Also called: Composite scheme

A court- or tribunal-sanctioned corporate reorganisation — a merger, a demerger, a reduction of capital or a composite of these — approved by the required majorities of shareholders and creditors.

In plain terms

The route almost every Indian group restructuring takes. Where a listed company is involved the exchanges and the securities regulator see it first, and the filed documents contain the valuation reports, the swap ratio and the appointed date.

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Appointed date

Regulation & tax

The date written into a scheme of arrangement from which the scheme treats the transfer of the undertaking as having taken effect.

In plain terms

It can sit a year or more before the tribunal sanctions the scheme, which is how a financial year you thought was closed gets reopened and re-presented. It is a legal date, not the date the accounting standard starts the restatement from.

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