Disclosure Of Major Interests In Shares

Question 1

Explain the disclosures required under the disclosure and transparency rules (DTRs) related to directors interests and major shareholdings

Answer 1

1. Information on significant stakes should be made available to the investing public.
2. The Investors must notify the company within TWO BUSINESS DAYS when their shares in the company reaches 3%.
3. Once it’s above 3%, they need to notify when it goes up/ down to the next whole % point.
4. Or if it falls below 3%.
5. A public company is required to keep a record of who owns its shares and any interests related to those shares (e.g. if someone holds a significant amount). This information must be made available to the public.
6. Companies may require confirmation of interests held anytime in THE LAST 3 YEARS

Question 2

What is “concert parties” with regards to disclosure of major interest in shares?

Answer 2

1. These are groups of individuals acting in agreement for the purpose of acquiring interest and shares.
2. Group of individuals secretly agreeing that each person only openly acquires less than the 3% threshold.
3. Then, they will use the combined interest to gain control or take over a resolution in a company’s meeting.

Question 3

What does the “Companies Acts” state with regards to concert parties?

Answer 3

1. Each individual in the party must have interest of other members of the party.
2. If the total no. of shares exceeds 3%, a disclosure must be made.
3. Each person must notify that they are in a party of such an agreement and must give details of it.

Question 4

Explain briefly what a PSC within a company is or what an LLP is

Answer 4

1. PSC stands for Persons with significant control in a company
2. LLP stands for limited liability partnership.
3. They must be registered in a statutory register. Statutory register includes details on who owns company shares, company directors etc.. that needs to be publicly available
4. Details of the holdings are made public.

Question 5

What is the aim of having a PSC register?

Answer 5

1. Combat tax evasion.
2. Combat money laundering.
3. Combat terrorist financing.