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.
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]