- ShareSoc and the UK Shareholders’ Association, who represent individual investors in the UK, welcome the Treasury Report on Secondary Market Placings.
- The recommendations, when implemented, will help to create a more level playing field for individual investors.
- The report also highlights the problems of disenfranchisement faced by retail shareholders in nominee accounts and proposes new systems which will allow retail investors to participate on fair terms in placings and fund raisings.
The UK Shareholders’ Association said:
“The UK Shareholders’ Association fully supports the Review’s recommendations. They are clear, practical and implementable. Many address issues which are long overdue for reform. We particularly like the proposals which will help to ensure that companies can raise capital quickly and efficiently, without incurring unnecessary cost and without compromising shareholder protections and pre-emption rights.
We also like the proposal that retail shareholders should be involved in all capital raisings. This, coupled with a call for ‘an ambitious drive to dematerialisation’, really does move the secondary capital raisings’ regime into the twenty-first century.”
“ShareSoc, which represents individual shareholders, is pleased with the report.
ShareSoc Director Cliff Weight commented, ‘The proposals regarding fund raising are helpful. We are delighted with the recommendations for restoring shareholder rights, about which we have campaigned since ShareSoc was formed in 2011. When the Review’s recommendations are implemented, individual investors will be able to participate more easily and equitably in fund raisings. Scope for them to exercise their shareholder rights will be improved and, as a result, so will corporate governance.’”
HM Treasury announced this review in November 2021 – Click here
We understand HM Treasury will be issuing a report on 19th July to coincide with the Chancellor’s speech at the Mansion House Dinner.
Cliff Weight, ShareSoc Director
Peter Parry, the UK Shareholders’ Association