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Corporate Finance
UKLA Update – Electronic communication
In an update sent to LIST! subscribers on 30 May 2008, the FSA has clarified its position in relation to letters from listed companies to shareholders relating to the introduction of electronic communication.
By way of background, in LIST! 17 (published in November 2007) the FSA stated that where a company writes to shareholders seeking agreement to receive documents electronically in accordance with the Companies Act 2006 that letter will be a "circular" for the purposes of the Listing Rules. As such, the letter would need to comply with LR13.3.1R (contents of all circulars). Under LR13.3.1R (6), a statement must be included in a circular asking shareholders who have transferred their shares to pass the document on to the transferee.
In its June 2008 update, the FSA acknowledges that such letters are often personalised and can contain confidential shareholder information. As a result the FSA indicates that, in these circumstances, it may not be appropriate to include in the shareholder letter the wording required by LR13.3.1R (6).
For the full text of the update, please click here.
30 June 2008
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