UK Listed Companies seeking to raise new share capital in response to the COVID-19 pandemic will welcome the new measures announced by the FCA relating to working capital statements, the modification of general meeting requirements under the Listing Rules, smaller share issues and shorter form prospectuses. Here, we summarise the new measures and highlight the points for companies to note in practice.
 

Background

  • On 8 April 2020, the FCA published a Statement of Policy announcing a series of measures aimed at assisting companies to raise new share capital in response to the COVID-19 pandemic, whilst also retaining an appropriate degree of investor protection. The full statement can be found here.
  • The new measures relate to working capital statements, the modification of general meeting requirements under the Listing Rules, smaller share issues and shorter form prospectuses, each of which are summarised in turn below.
  • The measures came into force on 8 April 2020, and the measures regarding working capital statements and general meeting requirements will be in place until the FCA advises otherwise. It is likely that these measures will only be in force for the duration of the coronavirus crisis.

Should you have any questions regarding the new measures set out in the FCA's guidance, please contact Kate Ball-Dodd or Harriet Hainsworth.

Originally published 1 May, 2020

Visit us at mayerbrown.com

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.