To ask Her Majesty's Government what assessment they have made of existing transparency requirements of public company directors regarding takeover approaches; and what plans they have, if any, to require such directors to disclose to shareholders any such approaches at the earliest appropriate time.
14 January 2021
The Takeover Code, which has a statutory basis under the Companies Act 2006, sets out a clear and orderly framework for takeovers, including measures to ensure fairness to stakeholders.
The Code sets out rules regarding disclosure of takeover offers made, including that a public announcement must be made when a firm intention to make an offer is notified to the board of the offeree company by or on behalf of an offeror, irrespective of the attitude of the board to the offer.
The Code is issued and administered by the independent Panel on Takeovers and Mergers. The Panel has enforcement powers for breaches of the Code. Changes to the Code itself are a matter for the Panel.