What is the required acceptance rate for a Scheme of Arrangement to be valid?

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The required acceptance rate for a Scheme of Arrangement to be valid is a majority by number and 75% by value of those members present and voting at the meeting. This dual threshold ensures that not only a majority of members support the scheme, but also that those in favor represent a significant share of the total value. This is important as it protects the interests of minority shareholders and gives a clear mandate for the arrangement, ensuring that it reflects both broad support and significant economic backing.

In practice, this means that if the scheme is taken to a vote, more than half of the voting members must agree to it (the majority by number), and the total value of shares they represent must be at least 75% of the total value of votes cast. This combination minimizes the risk of coercion and helps maintain fairness in the financial outcomes associated with the scheme.