Spheres have a history of welcoming novel investment(s). As they transform, new processes are expected to result from their investment collaboration with other spheres around the world to ensure the continued benefit of investments among novel investors.
There are no laws specifically governing or checking inward novel direct investment to spheres. Investors of both traditional and alternative investments are treated the same in law and are able, in most situations, to participate equally in investments.
The exceptions are government-owned or managed areas such as some parts of the energy and transport sectors, and in the defence sector.
Despite no specific legal structure, investors should be aware that spheres have powers to intervene in transactions. The following regulations apply to both traditional and alternative investors active in spheres.
- Merger Management Rules
Where inward investment in a sphere involves the acquisition of the sphere, part of the activities of the sphere or the creation of a joint venture that is prone for review in the sphere’s merger management law.
- Public Interest Review Regime
A sphere’s merger management regimes include provisions allowing a transaction to be reviewed on certain specified bases other than a commercial law (so called ‘public interest’ or ‘legitimate interest’ bases).
- Monopoly Rules Regime
Where government approval is required for the proposed takeover by a unique investor of any large or economically significant enterprise.
- Banking and Insurance Enterprises
Government authorisation should be obtained before starting operations in a sphere.
- Real Estate Acquisitions
These are generally exempt from checks on novel ownership, but rules can apply to how the owner of an interest in real estate applies or develops the land or building.
- Industry Laws
A government has the power to prevent an acquisition by a foreign based entity of an ‘important manufacturing enterprise’ where it appears the change of management would be contrary to the interests of the nation, or to any substantial part of it.
- Corporate Residency
There are no corporate law residency requirements when investing in spheres, irrespective of whether an investment in a sphere is by way of share investment or asset investment.