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“AI and sustainability - cure or curse?”
While AI can help resolve data issues in sustainable investing, it can create problems such as information breaches and inherent bias in data.
Global | Publication | December 25, 2015
Welcome to Essential Corporate News, our weekly news service covering the latest developments in the UK corporate world.
On December 17, 2015 the Department for Business, Innovation and Skills (BIS) published the Government’s response to feedback received on its consultation paper published in June 2015, which sought views on the draft Register of People with Significant Control Regulations (the Regulations) and a number of other issues. The response sets out how the Government plans to take the Regulations forward in the light of the results of the consultation process and it outlines how policy proposals have been developed and adapted since the consultation paper was published.
The Government response confirms the following:
The Government intends to lay the People with Significant Control Regulations before Parliament in January 2016, along with regulations to include LLPs in the regime. The Government also intends to publish finalised versions of the statutory and non-statutory guidance for companies, LLPs and PSCs in January 2016.
On December 21, 2015 the Department for Business, Innovation and Skills (BIS) published draft guidance for consultation on the new requirement for companies and limited liability partnerships (LLPs) to maintain a register of people with significant control (PSC). The draft guidance includes: statutory guidance for companies on understanding the meaning of “significant influence or control” in the context of companies, statutory guidance for LLPs on understanding the meaning of “significant influence or control” in the context of LLPs, a summary of the non-statutory guidance for companies and LLPs on the PSC requirements, and the non-statutory guidance for companies and LLPs on the PSC requirements.
The draft statutory guidance for companies on the meaning of “significant influence or control” provides that a person has significant control over a company if one of the specified conditions are satisfied. The first three specified conditions require the holding of more than 25 per cent of the company’s shares or voting rights in the company or the right to appoint or remove the majority of the board of directors. The fourth and fifth specified conditions require a person to have “significant influence or control” either over the company itself or over the activities of a trust or a firm which meets any of the other specified conditions in relation to the company. The statutory guidance then goes on to discuss the following:
The draft statutory guidance for LLPs on “significant influence or control” covers similar matters.
The draft non-statutory guidance discusses the regime for registering PSCs, identifying PSCs, information to be entered on the PSC register, updating PSC information, public and protected information, companies keeping the information on their own register at Companies House, understanding the PSC conditions in detail, and when companies are unable to get information for the PSC register.
Comments on the draft guidance are requested by January 11, 2015.
(BIS, Summary guide for companies – Register of people with significant control, 21.12.15)
(BIS, People with Significant Control: Guidance for Companies and LLPs, 21.12.15)
On December 18, the European Securities and Markets Authority (ESMA) published a follow-up report and accompanying press release on the development of the Best Practice Principles for Providers of Shareholder Voting Research and Analysis. The Best Practice Principles (the Principles) were published in March 2014 by the Best Practice Principles for Governance Research Providers (BPPG), following ESMA’s February 2013 report recommending that the proxy advisory industry develop a code of conduct in order to foster greater understanding and assurance among stakeholders in terms of what can rightfully be expected from proxy advisors.
The follow-up report makes the following observations:
As with its 2013 report, ESMA will communicate the information in the follow-up report to the European Commission.
On December 22, 2015 the London Stock Exchange (LSE) published AIM Notice 43, which provides feedback on Aim Notice 42 and confirms changes to the Aim Rules and AIM Note for Investing Companies. The revised AIM Rules for Companies and AIM Note for Investing Companies were also published.
The LSE notes that the proposals put forward in AIM Notice 42 to amend AIM Rule 8 (investing companies), AIM Rule 15 (fundamental changes of business), the Guidance Notes on AIM Rule 15 and paragraph 5.2 of the AIM Note for Investing Companies were positively received and the changes will be implemented as proposed.
The revised AIM Rules for Companies and AIM Note for Investing Companies will be effective from January 1, 2016.
(LSE, Feedback on Aim Notice 42 and Confirmation of Changes to Aim Rules, 22.12.15)
(LSE, AIM Rules for Companies – January 2016, 22.12.15)
(LSE, Mark-up: AIM Rules for Companies – January 2016, 22.12.15)
(LSE, AIM Note for Investing Companies – January 2016, 22.12.15)
(LSE, Mark-up: AIM Note for Investing Companies – January 2016, 22.12.15)
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