First merger of 2006 companies

A landmark has been reached for staff at Simcocks Trust.

The first merger of Isle of Man companies under the 2006 Companies Act has been concluded – considered a real test of the flexibility of the Act.

Speaking about the merger, Anne Couper Woods, executive director of Simcocks Trust, said: ‘We merged three (private) companies into one surviving company and were pleased to have been involved in what was the first merger of its kind.

‘It proved to be an interesting challenge for our company secretaries and also represented a substantial cost saving for our client when compared to the same project being undertaken by companies under the 1931 Act.

‘The clarity of the legal provisions and the relatively straight forward procedure made it a feasible exercise to undertake.’

Under the 1931 Companies Act, companies wishing to merge would have required a Scheme of Arrangement and an application to court which would have resulted in substantially higher costs, as well as taking much longer to achieve.