On 5 May 2016, the Pre-Emption Group published a monitoring report on the implementation of its 2015 Statement of Principles for disapplying pre-emption rights and a template resolution for disapplying pre-emption rights.
The monitoring report showed that the 2015 Statement of Principles were generally adhered to, but to assist companies further the template recommends companies to propose two separate resolutions:
- a 5% disapplication to be used on an unrestricted basis; and
- an additional 5% disapplication to be used for an acquisition or capital investment as defined by the 2015 Statement of Principles.
Where the board chooses to use the additional 5% authority, companies will need to disclose their reasons and the consultation process undertaken.
The template resolutions are considered good practice and companies will be expected to use them for general meetings held after 1 August 2016.
The full monitoring report can be accessed here:
The template resolutions can be accessed here:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
