Garmin 2009 Annual Report Download - page 53

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TheCompaniesLaw(2009Revision)alsocontainsseparatestatutoryprovisionsthatprovideforthe
merger,reconstructionandamalgamationofcompanies,whicharecommonlyreferredtointheCaymanIslandsas
a“schemeofarrangement.”Theproceduralandlegalrequirementsnecessarytoconsummatethesetransactions
aremorerigorousandtakelongertocompletethantheprocedurestypicallyrequiredtoconsummateamergerin
theUnitedStates.UnderCaymanIslandslawandpractice,aschemeofarrangementinrelationtoasolvent
CaymanIslandsexemptedcompanymustbeapprovedatashareholders’meetingbyamajorityofeachclassof
thecompany’sshareholderswhoarepresentandvoting(eitherinpersonorbyproxy)atsuchmeeting.Theshares
votedinfavoroftheschemeofarrangementmustalsorepresentatleast75%ofthevalueofeachrelevantclassof
thecompany’sshareholders(excludingthesharesownedbythepartiestotheschemeofarrangement)present
andvotingatthemeeting.TheGrandCourtoftheCaymanIslandsmustalsosanctiontheconveningofthese
meetingsandthetermsoftheamalgamation.Althoughthereisnorequirementtoseektheconsentofthe
creditorsofthepartiesinvolvedintheschemeofarrangement,theGrandCourttypicallyseekstoensurethatthe
creditorshaveconsentedtothetransferoftheirliabilitiestothesurvivingentityorthattheschemeof
arrangementdoesnototherwisemateriallyadverselyaffectthecreditors’interests.Furthermore,theGrandCourt
willonlyapproveaschemeofarrangementifitissatisfiedthat:
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•thestatutoryprovisionsastomajorityvotehavebeencompliedwith;

•theshareholdershavebeenfairlyrepresentedatthemeetinginquestion;
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•theschemeofarrangementissuchasabusinessmanwouldreasonablyapprove;and
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•theschemeofarrangementisnotonethatwouldmoreproperlybesanctionedundersomeother
provisionoftheCompaniesLaw(2009Revision)

Iftheschemeofarrangementisapproved,thedissentingshareholderwouldhavenorightscomparableto
appraisalrights,whichwouldotherwiseordinarilybeavailabletodissentingshareholdersofU.S.corporations,
providingrightstoreceivepaymentincashforthejudiciallydeterminedvalueoftheshares.
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Inaddition,ifanofferbyathirdpartytopurchasesharesinushasbeenapprovedbytheholdersofat
least90%ofouroutstandingshares(notincludingsuchthirdparty)pursuanttoanofferwithinafour‐month
periodofmakingsuchanoffer,thepurchasermay,duringthetwomonthsfollowingexpirationofthefour‐month
period,requiretheholdersoftheremainingsharestotransfertheirsharesonthesametermsonwhichthe
purchaseracquiredthefirst90%ofouroutstandingshares.AnobjectioncanbemadetotheGrandCourtofthe
CaymanIslands,butthisisunlikelytosucceedunlessthereisevidenceoffraud,badfaith,collusionorinequitable
treatmentoftheshareholders.
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Item1B.UnresolvedStaffComments
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None.
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Item2.Properties
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ThefollowingaretheprincipalpropertiesownedorleasedbytheCompanyanditssubsidiaries:
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GarminInternational,Inc.andGarminUSA,Inc.occupyafacilityofapproximately1,120,000squarefeet
on42acresinOlathe,Kansas,wherethemajorityofproductdesignanddevelopmentworkisconducted,the
majorityofaviationpanel‐mountproductsaremanufacturedandproductsarewarehoused,distributed,and
supportedforNorth,CentralandSouthAmerica.Garmin’ssubsidiary,GarminRealty,LLCalsoownsanadditional
46acresoflandontheOlathesiteforfutureexpansion.Inconnectionwiththebondfinancingsforthefacilityin