shareholder approval

The fifth freedom: Corporate mobility within the EU

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The fifth freedom: Corporate mobility within the EU

The text discusses the impact of Directive (EU) 2019/2121, which amends Directive (EU) 2017/1132, on the legal and business environment in Cyprus. This Directive enhances the mobility of companies within the EU internal market by facilitating cross-border conversions, mergers, and divisions, thus acting as an extension of the freedom of establishment. It aims to promote economic growth, competitiveness, and stability within the European single market by harmonizing rules and procedures across member states. The Directive includes provisions to protect the interests of shareholders, employees, and creditors during cross-border operations. Its implementation in Cyprus is expected to increase cross-border business activity, enhance competitiveness, improve legal certainty, and ensure stakeholder protections, but it may also present challenges in terms of compliance and adaptation for Cypriot companies. The text also notes that the existing Companies Law in Cyprus, CAP 113, already regulates cross-border mergers and the transfer of company seats in line with the Directive, but the new provisions on cross-border divisions represent a significant development for the Cyprus legal corporate system.

NatWest seeks approval to buy more stock to speed privatisation

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NatWest seeks approval to buy more stock to speed privatisation

NatWest (NWG.L) plans to seek shareholder approval for a buyback of up to 15% of its stock from the UK government as part of its privatisation efforts. This request is an increase from the previous limit of 5% per year. The bank, which is about one-third owned by taxpayers following a bailout during the 2007-9 financial crisis, aims to accelerate the government’s exit, planned by 2026. The proposed buyback, based on current market capitalisation, would be worth around £3 billion. The UK government has been reducing its stake from a peak of 84% through sales to institutional investors and directly to NatWest. Finance Minister Jeremy Hunt announced plans to sell stock to retail investors to speed up the process. NatWest’s annual meeting will also include votes on the formal appointments of chairman Rick Haythornthwaite and CEO Paul Thwaite. The bank’s shares have increased by 9% year-to-date, following a report of its highest annual profit since the bailout. However, sales of government-owned stock have been at a loss compared to the bailout price of 502 pence.