The Takeovers Panel has issued Guidance Note 21 which sets out the Panel’s approach to collateral
benefits. The Panel starts from the idea that unacceptable
circumstances will be likely to exist whenever a bidder provides a
security holder something of value which it does not offer to other
security holders.

Under s602(c) Corporations Act, if there is a proposal for the acquisition of a substantial interest, then, as far as practicable, the holders of the relevant class of voting shares must all have a reasonable and equal opportunity to participate in any benefits.