Rights Issues - Made Easy?

January 30, 2009
With the Association of British Insurers changing its guidance on directors’ powers to allot share capital and disapply pre-emption rights in relation to rights issues, and the FSA consulting on reducing the minimum subscription period for rights issues from 21 days to 15 days, it may soon be possible to run a rights issue over 16 days. This update reviews the proposed changes, which are intended to shorten the process so companies will not remain exposed to speculative pressures for an extended period of time while carrying out rights issues.