28.11 EXCLUSIONS
There are a number of things that are excluded.
Any kind of transaction relating to an offer pursuant to business rescue plan;
Any kind of deal in regard to appraisal rights does not constitute a distribution by the company or an acquisition of shares by the company within the meaning of s 48, and therefore are not subject to the provisions of s 48 or the application by the company of the solvency and liquidity test.
S 164 (20) applies to regulated companies only and provides that except to the extent expressly provided in s 164 or to the extent that the takeover regulation panel rules otherwise in a particular case, a payment by a company to shareholders in terms of s 164 does not obligate any person to make a comparable offer under s 125 to any other person.
Shares surrendered in the exercise of appraisal rights become part of the authorised and unissued shares of that class. In other words, these shares are automatically cancelled.