Public M&A: Do List Cos Really Need Omnibus RPT Approvals?

Public M&A: Do List Cos Really Need Omnibus RPT Approvals?

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

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