Which of the Following Is False Regarding the Merger Process

question 24

Multiple Choice

Which of the following is false regarding the merger process in South Africa?

• A) Shareholders cannot approve a merger unless 50 percent of all shareholders vote to accept the offer.
• B) Minority shareholders have access to South African courts and may employ them when disputes arise.
• C) The Companies Act establishes a panel to inquire about mergers or takeovers.
• D) The Companies Act and the rules of the Johannesburg Stock Exchange control mergers.
• E) If a change of corporate control takes place outside the stock exchange, the initiator of the merger must extend the offer to the shareholders and disclose all pertinent information to them within a reasonable amount of time.

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Definitions:

Merchandise

Goods that are bought and sold by businesses in the normal course of operations.

Foreign Exchange Loss

A decrease in domestic currency value resulting from transactions denominated in a foreign currency, often due to fluctuating exchange rates.

Ruble Receivable

An amount expected to be received denominated in Russian Rubles, typically from transactions or contracts.

Euro Payable

A liability or obligation denominated in euros payable to a creditor or supplier.