Enhancing the effectiveness of the listing regime – NAPF response - February 2014
The NAPF believes the proposals to protect the interests of minority shareholders are important and well considered, providing protection to independent shareholders without unduly burdening issuers.
We particularly welcome the proposed introduction of a dual voting hurdle in those circumstances where a premium listed company wishes to cancel or transfer its listing. Furthermore, the additional disclosure requirements in relation to independent directors is positive; we believe it is important that shareholders are able to make a full assessment of the quality and independence of those nominated to act on their behalf. We urge the FCA to keep the matter of the balance of the board in those circumstances where there is a controlling shareholder under review.
A reputation for high standards of governance, transparency and protection of minority shareholder rights is, in our view, vital to maintaining the reputation, integrity and thus attractiveness of the UK market for both investors and issuers.