Part 28Takeovers etc
Chapter 1The Takeover Panel
Contravention of rules etc
952Sanctions
(1)
Rules may contain provision conferring power on the Panel to impose sanctions on a person who has—
(a)
acted in breach of rules, or
(b)
failed to comply with a direction given by virtue of section 946.
(2)
Subsection (3) applies where rules made by virtue of subsection (1) confer power on the Panel to impose a sanction of a kind not provided for by the City Code on Takeovers and Mergers as it had effect immediately before the passing of this Act.
(3)
The Panel must prepare a statement (a “policy statement”) of its policy with respect to—
(a)
the imposition of the sanction in question, and
(b)
where the sanction is in the nature of a financial penalty, the amount of the penalty that may be imposed.
An element of the policy must be that, in making a decision about any such matter, the Panel has regard to the factors mentioned in subsection (4).
(4)
The factors are—
(a)
the seriousness of the breach or failure in question in relation to the nature of the rule or direction contravened;
(b)
the extent to which the breach or failure was deliberate or reckless;
(c)
whether the person on whom the sanction is to be imposed is an individual.
(5)
The Panel may at any time revise a policy statement.
(6)
The Panel must prepare a draft of any proposed policy statement (or revised policy statement) and consult such persons about the draft as the Panel considers appropriate.
(7)
The Panel must publish, in whatever way it considers appropriate, any policy statement (or revised policy statement) that it prepares.
(8)
In exercising, or deciding whether to exercise, its power to impose a sanction within subsection (2) in the case of any particular breach or failure, the Panel must have regard to any relevant policy statement published and in force at the time when the breach or failure occurred.
953Failure to comply with rules about bid documentation
(1)
This section applies where a takeover bid is made for a company that has securities carrying voting rights admitted to trading on a regulated market in the United Kingdom.
(2)
Where an offer document published in respect of the bid does not comply with offer document rules, an offence is committed by—
(a)
the person making the bid, and
(b)
where the person making the bid is a body of persons, any director, officer or member of that body who caused the document to be published.
(3)
A person commits an offence under subsection (2) only if—
(a)
he knew that the offer document did not comply, or was reckless as to whether it complied, and
(b)
he failed to take all reasonable steps to secure that it did comply.
(4)
Where a response document published in respect of the bid does not comply with response document rules, an offence is committed by any director or other officer of the company referred to in subsection (1) who—
(a)
knew that the response document did not comply, or was reckless as to whether it complied, and
(b)
failed to take all reasonable steps to secure that it did comply.
(5)
Where an offence is committed under subsection (2)(b) or (4) by a company or other body corporate (“the relevant body”)—
(a)
subsection (2)(b) has effect as if the reference to a director, officer or member of the person making the bid included a reference to a director, officer or member of the relevant body;
(b)
subsection (4) has effect as if the reference to a director or other officer of the company referred to in subsection (1) included a reference to a director, officer or member of the relevant body.
(6)
A person guilty of an offence under this section is liable—
(a)
on conviction on indictment, to a fine;
(b)
on summary conviction, to a fine not exceeding the statutory maximum.
(7)
Nothing in this section affects any power of the Panel in relation to the enforcement of its rules.
(8)
Section 1 (meaning of “company”) does not apply for the purposes of this section.
(9)
In this section—
“designated” means designated in rules;
“offer document” means a document required to be published by rules giving effect to Article 6.2 of the Takeovers Directive;
“offer document rules” means rules designated as rules that give effect to Article 6.3 of that Directive;
“response document” means a document required to be published by rules giving effect to Article 9.5 of that Directive;
“response document rules” means rules designated as rules that give effect to the first sentence of Article 9.5 of that Directive;
“securities” means shares or debentures;
“takeover bid” has the same meaning as in that Directive;
“voting rights” means rights to vote at general meetings of the company in question, including rights that arise only in certain circumstances.
954Compensation
(1)
Rules may confer power on the Panel to order a person to pay such compensation as it thinks just and reasonable if he is in breach of a rule the effect of which is to require the payment of money.
(2)
Rules made by virtue of this section may include provision for the payment of interest (including compound interest).
955Enforcement by the court
(1)
If, on the application of the Panel, the court is satisfied—
(a)
that there is a reasonable likelihood that a person will contravene a rule-based requirement, or
(b)
that a person has contravened a rule-based requirement or a disclosure requirement,
the court may make any order it thinks fit to secure compliance with the requirement.
(2)
In subsection (1) “the court” means the High Court or, in Scotland, the Court of Session.
(3)
Except as provided by subsection (1), no person—
(a)
has a right to seek an injunction, or
(b)
in Scotland, has title or interest to seek an interdict or an order for specific performance,
to prevent a person from contravening (or continuing to contravene) a rule-based requirement or a disclosure requirement.
(4)
In this section—
“contravene” includes fail to comply;
“disclosure requirement” means a requirement imposed under section 947;
“rule-based requirement” means a requirement imposed by or under rules.
956No action for breach of statutory duty etc
(1)
Contravention of a rule-based requirement or a disclosure requirement does not give rise to any right of action for breach of statutory duty.
(2)
Contravention of a rule-based requirement does not make any transaction void or unenforceable or (subject to any provision made by rules) affect the validity of any other thing.
(3)
In this section—
(a)
“contravention” includes failure to comply;
(b)
“disclosure requirement” and “rule-based requirement” have the same meaning as in section 955.