In this paper, we are setting out a package of measures designed to protect minority shareholders by giving them additional voting rights and greater influence over key decisions.
Why are we publishing this CP?
We have published a package of measures that will significantly enhance the protections for minority shareholders in premium listed companies where they are at risk of being abused by controlling shareholders. These changes will help us to meet our strategic objective of ensuring that markets work well by promoting the active engagement of shareholders with the companies they own.
This paper follows on from CP12/25 Enhancing the effectiveness of the Listing Regime[2], which was published by the Financial Services Authority in 2012, where we set out proposals to enhance the effectiveness of the Listing Regime. It covers:
- feedback to CP12/25
- near-final rules based on the original proposal where we have finalised our policy position
- consultation on the revised or new proposals as a result of feedback received, and
- the associated draft rules
Who is this CP aimed at?
This paper will interest:
- UK and overseas issuers with UK-listed securities or considering a UK listing of their securities
- firms advising on the issuance of UK-listed securities, and
- firms or persons investing in or dealing in UK-listed securities
This publication will also interest consumers who deal and invest in UK-listed securities either directly or indirectly through institutions. The policy proposals raise issues about the protection of investors.
What are the next steps?
Please send us your comments by 5 February 2014. Depending on the results of the consultation, we intend to implement the full and final package of measures in mid-2014.
Want to find out more?
For more information:
- view the FCA Handbook[5]
- CP12/25[2] – Enhancing the effectiveness of the Listing Regime