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REFILE-FACTBOX-Britain proposes new listing for sovereign controlled companies
July 13, 2017 / 1:20 PM / 4 months ago

REFILE-FACTBOX-Britain proposes new listing for sovereign controlled companies

(Changes British to Britain in headline)

LONDON, July 13 (Reuters) - Britain’s Financial Conduct Authority (FCA) proposed on Thursday a new premium listing segment for sovereign controlled companies which will operate alongside the original premium listing segment on the London Stock Exchange.

The key proposals of the new premium listing which differ from the original are:

** Available to commercial companies controlled by a shareholder that is a sovereign country controlling 30 percent or more of the voting rights of the company.

** Available to companies who want the listing to be in the form of depositary receipts, financial instruments which represent a foreign company’s shares, as well as shares.

** A sovereign controlling shareholder will not be considered a ‘related party’.

** A sovereign controlling shareholder will not have to enter into a legally binding arrangement to ensure that transactions between the company and the controlling shareholder will be conducted at ‘arms length’ and on commercial terms.

** The company would not need to enter into a written and legally binding agreement with any controlling shareholder intended to ensure it does not abuse its shareholding to the detriment of other shareholders.

** The company’s constitution would not need to provide for the election and re-election of independent directors being subject to approval via votes of both all shareholders and, voting separately, all independent shareholders.

** The few existing listed companies in the original premium segment that would be eligible for the new category would be entitled to apply to transfer their listing. A vote of independent shareholders would be required in order to do so.

Reporting by Dasha Afanasieva; editing by Alexander Smith

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