FRC issues reminder on non-pre-emptive issuances flexibility
Released 20 November 2020
The Financial Reporting Council (FRC) has issued a reminder that the Pre-Emption Group’s (PEG) recommendation for investors to apply additional flexibility in considering issuances of shares on a non-pre-emptive basis ends on 30 November 2020.
From 1 December 2020, the requirement for full pre-emption is reinstated except in specific circumstances as outlined in the PEG Statement of Principles. Non-pre-emptive issuances should be undertaken only when effective consultation has been conducted. The PEG encourages companies to consult the statements made in April and September to understand what constitutes such proper consultation.
Further information can be found at https://www.frc.org.uk/news/november-2020/additional-flexibility-on-non-pre-emptive-issuance.