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1 Key points of the Prospectus Directive >>more>>
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3 Proposed changes to the AIM Rules >>more>>
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4 Update on the disclosure of Price Sensitive Information >>more>>
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5 Corporate Governance and the Combined Code >>more>>
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6 Corporate Governance Guidelines for Investment Trusts >>more>>
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7 Proposed amendments to the Listing Rules relating to Investment Companies >>more>> |
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| Public Companies Update October 2003 |
3 PROPOSED CHANGES TO THE AIM RULES
In July, the London Stock Exchange released its consultation paper on a proposed change to the AIM Rules to make it a requirement that a company seeking the cancellation of the admission of its securities to AIM must make the request conditional on 75% of its shareholders consenting in a general meeting, save where the Exchange consents. The admission of AIM securities will be cancelled by the Exchange where these have been suspended from trading for six months.
The proposed change is, in part, intended to protect the minority. The consultation is focussed on the 75% threshold and whether shareholders should always be consulted, even if the company is transferring to another market (although the proposal is that this should not be the case in relation to a move to an EU Regulated Market). It is not proposed that the 20 day notice period be changed and, if consent is given by an ordinary resolution, it is unlikely that consent will delay the process of de-listing although it will be an additional expense for the Company concerned.
The consultation ended on 19 September 2003 and any changes to the AIM rules are expected to become effective in October 2003.
The AIM rules and the consultation paper can be downloaded from:-
www.londonstockexchange.com/aim/rules and www.londonstockexchange.com/aim/notices, respectively.
If you require further information on any matter covered in this note, please contact your principal contact at Charles Russell or Simon Gilbert, Katy Knight, Clive Hopewell or Alexander Keepin (London), Francis Rundall or Richard Norton (Cheltenham) or Geoff Sparks (Guildford) and on 0207 203 5000.
Please note that the summaries above are a general indicative guide only. They are not exhaustive. This information has been prepared by the firm as a service to our clients. As it is a general guide, we recommend that you seek professional advice before taking action. No liability can be accepted by the firm for any action taken or not taken as a result of this information. The firm is not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to clients because we are members of the Law Society. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide. |
