6 - Other Regulatory Requirements Flashcards
What percentage of votes are required to pass an ordinary resolution?
50%
What percentage of votes are required to pass a special resolution?
75%
What can a takeover panel do in the event of an unfair takeover?
Issue a public censure
What is the minimum equity issue in a standard listing?
£30 million
What level of control of a market in goods or services would suggest a substantial lessening of competition?
25%
When must stock dealings be reported to the company?
-Dealings by directors or anyone connected to them
-Any dealings 3% or more of market cap
Both within 2 business days
When a UK listed company releases profit figures and/or dividends which of the following methods do the FCA’s listing rules require the company to use?
By informing a primary information provider (PIP) without delay
What are the 3 main requirements for a company that wants admission to the high growth segment market?
-10% min free float at IPO
-Being incorporated in the EEA
-Having historic revenue of 20% on a CAGR basis over 3 years
What are the 2 minimum criteria for a premium listing?
- £30m market cap
- 3 years trading history
What percentage must a predator buy in a company before the rest must sell their shares to them?
90%
When a listed company receives notification of a 3% interest to whom must it disclose this information?
A Regulatory Information Service
What body does a company seeking to apply for a listing on the Official List of the LSE apply to?
FCA
What does an equalisation agreement do?
Ensures shareholders have similar power
What 2 things must a firm going public do as per FCA rules?
Publish a prospectus and have it approved by the FCA
How often should the board of directors evaluate the composition of the board under the UK Code for Corporate Governance?
Every year
At what level is a mandatory bid required according to the Takeover Code?
30% of the voting capital
When the directors of a listed company have price sensitive information to disclose to the market, which of the following must the company inform?
A Primary Information Provider (PIP)
What is the main role of a NOMAD after a company is approved to be listed?
Provide advice on exchange rules
Who needs to appoint a whistleblower champion?
Only deposit takers with assets greater than £250m need to appoint a whistleblower’s champion.
How does voting work at shareholder meetings?
On a show of hands, each member present at the meeting who is entitled to vote has one vote. On a poll vote, due regard is given to those who hold a large number of shares
What are the 3 scenarios where companies not have to publish a prospectus before selling shares to the public?
-Scrip issues
-Takeovers
-Issues up to 150 people in the UK
Who are the 2 bodies that can decide whether or not a merger goes ahead?
-Competition and Markets Authority
-The Secretary of State
In the Remuneration code, what is the condition for guaranteed bonuses?
Guarantees must only be given in exceptional circumstances to new hires for the first year of service
What is the purpose of the Statement of Responsibility?
To show each Director has taken on a prescribed responsibility, as per the Senior Managers’ Regime
