UK: The ownership of quoted company shares

The Office for National Statistics has published updated analysis on the ownership of UK quoted company shares: see here. The report notes that the proportion of shares (in terms of value) held by those outside of the UK has reached a record high: 54.9%. The following chart, from the ONS report, indicates the other ownership categories:

The "rest of the world" category is comprised as follows:

UK: The Parker Review - an update on the ethnic diversity of boards

The Parker Review today published a report with up to date analysis of the ethnicity of FTSE350 company directors: see here (pdf). This follows the publication of the original report, in 2017, in which two targets were set: that, by the end of 2021, all FTSE100 boards would have at least on director of colour; FTSE250 companies were to meet this target by 2024.

The update reports that in the FTSE350, amongst directors where ethnicity is known, there are 7.5% directors of colour. In the FTSE100, there are 98 directors of colour. The report was based on information from 256 companies and over half of these - 150 (31 from FTSE100; 119 from the FTSE250) - did not have at least one director of colour on their boards. The report also contains research commissioned by the Financial Reporting Council on the reporting of board diversity policy in annual reports. This research reveals that most FTSE350 companies do not set measurable objectives for board ethnic diversity. The FRC has commented on these findings: see here.

UK: England and Wales: shareholder agreements and restraints of trade

Judgment was given today in Guest Services Worldwide Ltd v Shelmerdine [2020] EWCA Civ 85. The decision is an important one on the operation of restraints of trade contained within shareholder agreements. At issue was whether a restriction in such an agreement continued to apply to an employee shareholder - defined as "any shareholder who is also an employee, agent or director" - if they remained a shareholder but were no longer an employee, agent or director.

At first instance, the trial judge held that the restriction did not apply. The Court of Appeal unanimously disagreed, Lady Justice Asplin observing that "it makes no commercial sense at all (nor would it at the time the Shareholders' Agreement was executed) if the restrictions ... can be avoided altogether and with immediate effect, by terminating one's employment, agency or directorships" (para. [33]).

UK: The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2020

The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2020 were laid before Parliament yesterday: see here. The accompanying explanatory memorandum is available here (pdf) and it explains the purpose of the Regulations - in general terms - as follows: "This instrument continues the process of addressing failures of retained EU law to operate effectively and other deficiencies arising from the withdrawal of the United Kingdom (UK) from the European Union (EU). This is intended to ensure that the frameworks for regulatory oversight and professional recognition of statutory auditors and third country auditors in the UK work effectively following the UK’s withdrawal from the EU".

Italy: OECD capital market review

The OECD has recently published, as part of its capital market series, a capital market review for Italy: see here (pdf).