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Literal rule meaning

What does Literal rule mean?
In legal practice, the literal rule means the court reads the statute and gives effect to the words actually used, giving them their ordinary, natural (plain) meaning in the text and structure of the Act. It is a descriptive common-law label developed in case law, not a statutory definition. Key features and use: judges start with the ordinary meaning; where the language is clear, that meaning is applied even if the result is strict or inconvenient. If the wording is ambiguous, produces absurdity, or undermines the scheme of the legislation, the court may turn to other canons of statutory interpretation, such as the golden rule, the mischief rule or the purposive approach, and may use intrinsic and extrinsic aids. Default meanings in the Interpretation Acts (e.g., Interpretation Act 1978; Interpretation Act 2005 (Ireland); Scotland’s 2010 Act; Northern Ireland’s 1954 Act) also inform the text. Across England & Wales, Scotland, Northern Ireland and Ireland, usage is broadly consistent, though modern interpretation is more purposive (including under the Human Rights Act 1998 and constitutional principles in Ireland). The literal rule remains a common starting point in statutory interpretation.
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View the related Practice Notes about Literal rule

PRACTICE NOTES
Defined benefit pension schemes in takeovers under the UK Takeover Code: trustee rights, offeror disclosures, Rule of Six, intention statements, mitigation agreements, notifiable events and Pensions Regulator clearance

This Practice Note considers the pension aspects that arise on transactions (including share sales) within the scope of the City Code on Takeovers and Mergers (the Takeover Code). For pension issues of more general application to share sales, see Pension issues in share sales—an introduction. The Takeover Code The Takeover Code is the commonly used name for the City Code on Takeovers and Mergers. It is issued by the Panel on Takeovers and Mergers (the Panel), the independent supervisory body for corporate transactions under Part 28 of the Companies Act 2006. Purpose of the Takeover Code The Takeover Code establishes an orderly framework for the conduct of takeovers. Its primary aim is to ensure that the shareholders of a target company are treated fairly and equally and are afforded the opportunity to decide on the merits of a takeover offer. The Takeover Code comprises principles and Rules and emphasises compliance with their spirit rather than a purely literal reading. When does the Takeover Code apply?...

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