When the new Prospectus Regulation came into force in July 2017, it increased the threshold for the exemption from the obligation to publish a prospectus in respect of an increase in securities admitted to trading from up to 10% to up to 20%.
In spite of the increased threshold, the Pre-Emption Group has confirmed that it will not relax its own requirements; accordingly, there is no change to the flexibility permitted by the Pre-Emption Group's 2015 Statement of Principles as a consequence of the Prospectus Regulation. The Group continues to support the overall limit contained in the Statement of Principles, whereby a company may seek authority by special resolution to issue non-pre-emptively for cash equity securities representing:
The Pre-emption Group notes that whilst decisions about specific placings are a matter for individual shareholders, the Statement of Principles reflects a generally agreed position supported by the Investment Association and Pensions and Lifetime Savings Association. To assist in a constructive discussion between companies and shareholders, companies should be mindful of the expectations included within the Statement of Principles.