PEG issues its first report monitoring the use of its updated Statement of Principles
08 Mar, 2024
The Pre-emption Group (PEG) has issued its first annual monitoring report (“the report”) monitoring the use of its updated Statement of Principles on the disapplication of pre-emption rights.
In November 2022, PEG published a revised Statement of Principles on the disapplication of pre-emption rights following the recommendations set out in the UK Secondary Capital Raising Review.
The report examines the implementation of the revised Statement of Principles by FTSE 100 and FTSE 250 companies for meetings held between 4 November 2022 and 31 July 2023 and includes the following key findings:
- 55.7% of FTSE 350 companies with an AGM during the study period sought enhanced disapplication authority allowed under the new Statement of Principles.
- 65.7% requested authority for a specified capital investment, in addition to general corporate purposes.
- 98.3% had all disapplication resolutions passed by shareholders, with only a small number seeing significant dissent.
A press release with links to the PEG monitoring report is available on the FRC website. An accompanying FRC podcast is also available on the FRC website.
