§ Sir Geoffrey FinsbergTo ask the Secretary of State for Trade and Industry what steps he proposes to take to ensure that small shareholders who may wish to retain, as of right, share certificates in a company, are not outvoted by institutional shareholders.
§ Mr. RedwoodSubject to my being satisfied that the interests of small shareholders will be properly safeguarded, I expect the regulations now being drafted to provide that no company may put its shares into TAURUS unless its shareholders have passed a special resolution to that effect. An extraordinary resolution will be needed if a class of shares or any other kind of security is to become uncertificated. In both cases a three-quarters majority will be required. The proportion of private to institutional shareholders required to achieve such a majority will vary from company to company.