On 8 March 2018, the London Stock Exchange issued its updated AIM Rules for companies following on from AIM Notice 50. The rules include an early notification process, guidance on appropriateness for admission and corporate governance disclosures. Key corporate governance changes are set out below.
| Areas |
Proposals |
New applicants, pre-admission announcement
|
From 30 March 2018, an applicant to AIM must, in its pre-admission announcement, state the corporate governance code that the board has decided to apply. |
New applicants, admission document
|
From 28 September 2018, an applicant will have to state in its admission document not only the recognised code that it has decided to apply but also how it complies with that code and / where it departs from it, its reasons. (See also Rule 26 below.)
|
Rule 26 company information disclosure
|
From 28 September 2018, AIM companies must additionally disclose on their website (i) a recognised corporate governance code that the board has decided to apply; (ii) how the company complies with it; and (iii) where the company departs from it, an explanation of its reasons. This information should be reviewed annually and state the review date. |
The LSE has chosen not to give guidance on what is a "recognised corporate governance code", wishing to give companies flexibility to choose an appropriate industry code for their stage of development, sector and size. Examples given are the Quoted Companies Alliance Code or the UK Corporate Governance Code, or for companies with a home listing elsewhere than the UK, an appropriate code from their home jurisdiction.
The date of 28 September has been chosen to give AIM companies and their nominated advisors time to prepare. AIM companies that currently apply no corporate governance code will have the most to prepare, having to choose a recognised code and be in a position to disclose (i) how they comply with it and (ii) any departures and reasons. For AIM companies already applying a code, they will need to update their Rule 26 website disclosures. It is, of course, open to companies to explain departures from their chosen code.
For a full list of our corporate partners and consultants please see page eight of the PDF or contact any of the key contacts listed below.
