We comment on FCA proposals to strengthen minority shareholder influence in premium listed companies.

  • Deloitte Response CP 13 15 Feedback Image

26 Jan, 2014

We have published our comment letter on the Financial Conduct Authority’s (FCA’s) consultation paper ‘CP13/15: Feedback on CP12/25 – Enhancing the effectiveness of the Listing Regime and further consultation' (“the consultation paper”).

The consultation paper sets out a package of measures designed to protect minority shareholders in premium listed companies by giving them additional voting rights and greater influence over key decisions.

We agree with the FCA’s proposals to change the protections for minority shareholders where there is a ‘controlling shareholder’ (who together, or with associates, controls at least 30% of a premium listed company) with some minor suggestions on transition to the new regime, as well as a suggestion that a different term for such shareholders may be helpful to avoid giving the impression that these rules only apply when someone exercises actual control in an accounting sense.

We welcome the FCA’s other proposals to extend some of the Listing Principles to companies with a standard listing.

Further comments and full responses to all questions raised in the invitation to comment are contained within the full comment letter.

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