Final answer:
To facilitate a going private transaction, an OBCA corporation will need to propose a transaction with a fairness opinion, form a special committee of independent directors, obtain shareholder vote approval, provide transparent information, make regulatory filings, and possibly arrange funding for share buybacks.
Step-by-step explanation:
When an OBCA (Ontario Business Corporations Act) corporation desires to undergo a going private transaction, it must perform several steps to ensure compliance with legal requirements and to protect the interests of shareholders. First, it must make a proposal that usually includes a fairness opinion from a financial advisor, indicating that the terms of the transaction are fair to shareholders. Next, a special committee often made up of independent directors is formed to review and negotiate the transaction terms, providing a safeguard against potential conflicts of interest.
Furthermore, a shareholder vote is typically required, with a majority of the minority (non-interested shareholders) needing to approve the transaction. The company must also provide shareholders with detailed and transparent information about the transaction to enable informed voting. It's essential that all regulatory filings, such as disclosure documents with securities regulators, are properly completed and accurate. Finally, the corporation might need to arrange funding to purchase the outstanding shares from the public shareholders if the going private transaction involves a share buyback.