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ARTICLE · 14 JULY 2011

Possible Legislation On Loyalty Rights

De Brauw Blackstone Westbroek
De Brauw Blackstone Westbroek
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De Brauw Blackstone Westbroek

De Brauw Blackstone Westbroek

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The Minister of Justice has sent a letter to parliament in which he describes the features of possible statutory provisions regarding long-term shareholding and loyalty rights.

United KingdomCorporate/Commercial Law

The Minister of Justice has sent a letter to parliament in which he describes the features of possible statutory provisions regarding long-term shareholding and loyalty rights. These provisions would allow listed companies to award extra voting rights or dividend to shareholders who have held their shares for a longer period, as specified in the company's articles of association. The loyalty rights would lapse on transfer of the shares.

The Minister wants to exchange views with experts on this issue in the near future.

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