DBERR have just published a draft of The Companies (Share Capital and Acquisition by Company of its Own Shares) Regulations 2009 for comment. The draft Regulations make certain changes to the new Act.
The draft regulations:
- reduce the minimum pre-emption rights issue subscription period set out in section 562(5) of the 2006 Act from 21 days to 14 days
- introduce a new requirement in section 646 of the 2006 Act so that, when creditors object to a reduction in a company’s capital, they should demonstrate that their claim is at risk and that the company has not provided adequate safeguards; and
- remove the 10% cap on companies holding shares in treasury and extend the period for which authorisation may be given for the purchase of shares from 18 months to 5 years.
DBERR seeks comments by 17 April. The draft regulations can be found at
http://www.berr.gov.uk/whatwedo/businesslaw/co-act-2006/draft/page40411.html
