Type: Client Alerts
In summary, the new rules (as amended following the issue of the original consultation paper) will mean the following for a company with a controlling sovereign-state shareholder:
- A transaction between the controlling shareholder and the company will not require a fairness opinion or independent shareholder approval (unlike dealings between the company and any other 10 per cent shareholder, or a director). However, following a change to the original proposals, the company will still have to announce these transactions to the market (subject to the usual exceptions, for example, for very small transactions). Buybacks of shares by the company from the controlling shareholder will also remain subject to the usual controls on buybacks from related parties.