The National Association of Pension Funds (NAPF) today commented on the FTSE Group’s announcement to increase the minimum free float threshold for UK incorporated companies to 25% of a company’s equity.
NAPF Head of Corporate Governance David Paterson said:
“This is a step in the right direction, but it doesn’t go far enough.
“In reality the 25% minimum does not provide the protection for minority investors which is derived from being able to block a majority shareholder resolution.
“FTSE should set up a clear timetable for reviewing the 25% minimum as we believe that shareowners would be better served by a move towards 50%.”
Earlier this week, the NAPF wrote a letter to the Chief Executive of the FTSE Group to express its concerns on free float rules. The NAPF believes that the free float threshold should be increased to 50% to align it with the requirement for overseas incorporated companies. This would eliminate the possibility of overseas companies avoiding the need to have a 50% free float by incorporating in the UK or by using a UK shell holding company.
Notes to editors:
The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Contacts:
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]