The consultation period is expected to close on 2 January 2013 and the FSA is expected to publish its reactions in the spring of 2013. The proposed amendments are primarily at the request of the FSA to better protect minority investors. This stems from the criticism that the credibility of the premium listing segment has been compromised by the fact that publicly traded companies do not properly regulate relationships with their controlling shareholders. If a company does not enter into a relationship agreement with a controlling shareholder, if the company violates the terms of the agreement or if the company becomes aware of the violation of the provisions of such an agreement, “enhanced supervisory measures” apply to the company. These provisions require that all transactions with the majority shareholder, regardless of size, be subject to prior independent agreement of the shareholders. In effect, this means that safe ports no longer apply to the regime for transactions with parties related to such transactions and that independent shareholders are able to veto them. The new rules will take into account a number of other changes in this area. neither the controlling shareholder nor its associated companies will propose or propose a shareholder decision to circumvent or circumvent the proper application of the listing rules. The agreement, which contains the obligations set out in LR 6.5.4R, also contains that neither the controlling shareholder nor its associated companies will take measures that would prevent the applicant from meeting its obligations under the rating rules; Disclosure of compliance with independence rules – the existence and compliance of the independence provisions in the relationship agreement must be disclosed in the company management report. The company`s declaration of compliance by a controlling shareholder should only be made to the extent that the company is known.
In the event of non-compliance with the independence rules, the rules stipulate that the publicly traded company should consider deleting its listing or transferring it to the default list segment. Decotation seems to be a perverse response to a situation created by non-compliance with the provisions relating to the protection of minorities. The Board of Directors confirms that, in accordance with the Listing Rules, the Company entered into a relationship agreement with Wittington and the Foundation`s directors on November 14, 2014 containing the necessary obligations (the “relational agreement” as amended and reviewed on June 25, 2020). CP 13/15 contains a proposed definition of the controlling shareholder and requests feedback.