Material variation
8.28
Pursuant to paragraph 8.22(3) of the Main LR, an amendment, modification or variation to a proposal which has been approved by shareholders resulting from the direction or condition imposed by the relevant authorities does not require shareholder approval under paragraph 8.22(1) of the Main LR.
Company A obtains shareholder approval for its corporate proposal i.e. to purchase a 10% interest in Company B. Subsequently, before making a submission for approval to the relevant authority, Company A revises its proposed purchase to a 30% interest in Company B. Company A then submits the amended proposal to the relevant authority for approval. The amended proposal is approved by the relevant authority. Although the amendment is material, it is already approved by the relevant authority. Would Company A still need to obtain shareholder approval for the amendment?
Yes, the material amendment to Company A's proposal would still require shareholder approval under paragraph 8.22(1) of the Main LR. Although the amended proposal may have been approved by the relevant authority, the amendment was not made pursuant to a direction or condition imposed by such authority.