Abstract
By the Companies Act 1985, s. 81 it is an offence for a private company to offer shares to the public. The result is that only PLCs can offer shares to the public. However an offer is not made to the public if the only persons who are able to take it up are the persons who receive the offer or if the offer can otherwise be regarded as being a ‘domestic concern’ of the persons making and receiving it (s. 60(1)). By s. 60(4) an offer is to be regarded as being a domestic concern if it is made to:
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(a)
an existing member of the company making the offer;
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(b)
an existing employee of the company;
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(c)
a member of the family of such a member or employee (as defined in s. 60(5));
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(d)
an existing debenture holder.
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Bibliography and Further Reading
Andenas and Kenyon-Slade (eds) Financial Market Regulation. Sweet & Maxwell, 1993.
Gore-Brown on Companies, 44th edn, Jordans, 1986, ch. 12.
Page and Ferguson, Investor Protection, Butterworths, 1992.
Pennington (1984) 5 Co Law.
Plender and Wallace, The Square Mile: A Guide to the New City of London, Century Publishing, 1985.
Review of Investor Protection. Part I (Cmnd 9125, 1984).
Rider, Chaikin and Abrams, Guide to the Financial Services Act 1986, CCH editions, 1987.
Streight, Futures Markets. Blackwell, 1983.
Welch (1985) 6 Co. Law 246.
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© 1998 Janet Dine
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Dine, J. (1998). Public Issue of Securities. In: Company Law. Macmillan Law Masters. Palgrave, London. https://doi.org/10.1007/978-1-349-14583-6_7
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DOI: https://doi.org/10.1007/978-1-349-14583-6_7
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