- Public M&A: Do List Cos Really Need Omnibus RPT Approvals?
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Public M&A: Do List Cos Really Need Omnibus RPT Approvals?
Public M&A: Do List Cos Really Need Omnibus RPT Approvals?
November 28, 2023
Key Takeaways
There seems to be an overlap between regular RPT approvals and omnibus approval route creating ambiguity on what type of approvals must be procured for long term related party contracts?
Listed companies often enter into long term contracts with their subsidiaries, affiliates or related parties – must they seek majority of minority approval for such contracts only once, or must that approval be refreshed each year?
Omnibus, or blanket approval, appears designed for transactions that may not necessarily be contained in a ‘contract’; arguably, so long as all transactions are within the confines of a ‘contract’ a one-time approval should be sufficient
