Page 22 - Dittmar Quarterly Q1 2019

QUARTERLY Q/1 – 2019
Identification of shareholders and transmission of information
3.
The new rules will enable publicly listed companies Listed companies are likely to exercise this right
to identify their shareholders through intermediaries, sparingly due to high costs associated with its use such as investment firms and nominee registration and only with regard to nominee-registered shares. custodians, as well as facilitate the transmission of The latter is because up-to-date information information between market participants. Relevant regarding the direct ownership of listed companies provisions will be included in the Securities Markets is publicly available through the national central
Act and the Act on Investment Services and securities depository, Euroclear Finland. That being obligations therein will be applicable from said, we believe that the right may prove to be useful 24 September 2020 onwards. in situations where target company management
is suspecting a takeover attempt by a prospective A listed company will have a right to know the bidder and wants to know whether the prospective
identity of its shareholders by requesting information bidder has bought any shares of the target company regarding shareholder identity from such investment in a toehold acquisition.
firms and nominee registration custodians that
provide safekeeping of shares in the EEA. Expenses Intermediaries will have corresponding obligations arising from such requests would be borne by the to communicate information regarding shareholder requesting company and should reflect actual costs. identity to listed companies. Communication must
We believe that the right may prove
to be useful in situations where target company management
take place without delay and notwithstanding confidentiality provisions. Moreover, intermediaries must carry out arrangements and provide information necessary for exercise of shareholder rights.
is suspecting a takeover attempt by a prospective bidder.
The proposal introduces time limitations on the storage of the acquired or communicated information. According to the proposal, companies and intermediaries may not store information regarding shareholder identity for longer than
12 months.