From 1 July 2012, prospectuses published in connection with pre-emptive offers of shares by Main Market or AIM companies, and prospectuses published by SMEs and small cap Main Market companies, will be shorter and cheaper to produce as less information will be needed. In addition:
- Summaries, which appear at the front of prospectuses, will in most cases be slightly longer, and specified information will have to be presented in a particular order.
- More companies will be able to offer shares to their EEA-based employees without having to produce a prospectus.
- Across all EEA states, investors will have the same amount of time to withdraw their acceptance if a supplementary prospectus is published.
- Where securities are offered via a "retail cascade", it will be clearer who is legally responsible for information provided to investors, and on what terms financial intermediaries are authorised to resell or place securities on the basis of the issuer's prospectus.
Click here for further details of the changes and their likely impact on share issues.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 29/06/2012.