C3Part 28Takeovers etc

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C2Chapter 2Impediments to takeovers

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Modifications etc. (not altering text)

Opting in and opting out

I1C1966Opting in and opting out

1

A company may by special resolution (an “opting-in resolution”) opt in for the purposes of this Chapter if the following three conditions are met in relation to the company.

2

The first condition is that the company has voting shares admitted to trading on a regulated market.

3

The second condition is that—

a

the company's articles of association—

i

do not contain any such restrictions as are mentioned in Article 11 of the Takeovers Directive, or

ii

if they do contain any such restrictions, provide for the restrictions not to apply at a time when, or in circumstances in which, they would be disapplied by that Article,

and

b

those articles do not contain any other provision which would be incompatible with that Article.

4

The third condition is that—

a

no shares conferring special rights in the company are held by—

i

a minister,

ii

a nominee of, or any other person acting on behalf of, a minister, or

iii

a company directly or indirectly controlled by a minister,

and

b

no such rights are exercisable by or on behalf of a minister under any enactment.

5

A company may revoke an opting-in resolution by a further special resolution (an “opting-out resolution”).

6

For the purposes of subsection (3), a reference in Article 11 of the Takeovers Directive to Article 7.1 or 9 of that Directive is to be read as referring to rules under section 943(1) giving effect to the relevant Article.

7

In subsection (4) “minister” means—

a

the holder of an office in Her Majesty's Government in the United Kingdom;

b

the Scottish Ministers;

c

a Minister within the meaning given by section 7(3) of the Northern Ireland Act 1998 (c. 47);

F1d

the Welsh Ministers;

and for the purposes of that subsection “minister” also includes the Treasury, the Board of Trade F2and , the Defence Council F3. . . .

8

The Secretary of State may by order subject to negative resolution procedure provide that subsection (4) applies in relation to a specified person or body that exercises functions of a public nature as it applies in relation to a minister.

“Specified” means specified in the order.