Quarterly Report for Q4 2024 on RPC Trading
Published on 23 January 2025, this regular quarterly update is designed to keep listed company clients and other market participants informed about key developments relevant to issuers on the Main Market and AIM market of the London Stock Exchange.
The Pre-Emption Group released its second report on 22 November 2024, monitoring the use of its Statement of Principles on the disapplication of pre-emption rights for UK listed companies after it was updated in 2022. The revised Statement increased the level of disapplication authority that companies can request to 20%. The report focused on FTSE 350 companies holding AGMs between 1 August 2023 and 31 July 2024, showing a significant increase in the adoption of the revised Principles. 67.1% of FTSE 350 companies requested enhanced disapplication authority, compared to 55.7% the previous year. Additionally, 64.1% asked for authority for specific capital investment purposes, alongside general corporate purposes. Notably, 99.4% of all disapplication resolutions were passed, with only an average of 4.7% votes against.
The Investment Association recently issued its updated Principles of Remuneration for the 2025 AGM season. These principles focus on promoting long-term value creation, aligning remuneration with corporate strategy, supporting individual and corporate performance, and driving sustainable financial health and risk management. Remuneration committees are encouraged to consider factors like remuneration philosophy, structures, and levels to ensure alignment with shareholder interests and long-term company goals. The Principles aim to guide remuneration committees in making informed decisions and engaging with shareholders to justify their pay policies. Investors will evaluate remuneration proposals on a case-by-case basis to ensure they are in line with the UK Corporate Governance Code.
The Takeover Panel announced changes to the jurisdictional scope of the UK Takeover Code, effective from 3 February 2025. The revisions aim to focus the Code on companies registered and listed in the UK. These changes align with the proposals put forward in the April 2024 consultation. Currently, the Code applies to offers for companies with their registered office in the UK, the Channel Islands, or the Isle of Man if their securities are traded on UK regulated markets or if their central management and control is in the UK. Private companies with securities traded in the UK within the last 10 years are also subject to the Code. The narrowed scope will streamline the application of the Code to companies with more direct UK connections.
