Frequenty Asked Questions
1. What are the key aspects of UK corporate law?
The key aspects fall into three broad categories; pre-emptive rights, takeovers and the disclosure of interests in shares.
2. What pre-emptive rights do shareholders in the UK have?
Existing shareholders have the right of first refusal; however, London AIM-listed companies typically seek approval from their shareholders, on an annual basis, for the issuance of an additional 10% of the outstanding shares of the London AIM-listed company for cash.
3. How are UK shareholders protected in the event of a proposed takeover?
The City Code on Takeovers and Mergers compels a party acquiring 30% or more of a company to make a cash bid for the entire company at the highest price paid during the last 12 months.
4. What are the significant shareholder disclosure requirements in the UK?
All shareholders at or above the 3% level must make themselves known to the company and must notify the company if and when they breach a full percentage point in either direction above the 3% level. The company then announces this activity to the market via the London Stock Exchange’s Regulatory News Service (RNS).