AIM Rule 26 Explained
An overview of the ruleShould you need advice or information about Rule 26 and the creation of Investor Relations websites, please get in touch with our dedicated AIM Rule 26 digital team.
- a description of its business and, where it is an investing company, its investing policy and details of any investment manager and/or key personnel;
- its country of incorporation and main country of operation;
- its current constitutional documents (e.g. its articles of association);
- details of any other exchanges or trading platforms on which the AIM company has applied or agreed to have any of its securities (including its AIM securities) admitted or traded;
- the number of AIM securities in issue (noting any held as treasury shares) and, insofar as it is aware, the percentage of AIM securities that is not in public handstogether with the identity and percentage holdings of its significant shareholders.This information should be updated at least every 6 months and the website should include the date on which this information was last updated;
- details of any restrictions on the transfer of its AIM securities;
- the annual accounts published pursuant to rule 19 for the last three years or sinceadmission, whichever is the lesser, and all half-yearly, quarterly or similar reports published since the last annual accounts pursuant to rule 18, and from 3 January 2018 the annual accounts published (on or after that date) pursuant to rule 19 and all half-yearly, quarterly or similar reports published (on or after that date) pursuant to rule 18 must be posted and maintained on its website for a period of at least five years;
- all notifications the AIM company has made in the past 12 months. An AIM company must also post and maintain on its website for a period of at least five years all inside information it is required to disclose publically by MAR on or after 3 January 2018;
- its most recent admission document together with any circulars or similar publications sent to shareholders within the past 12 months and for a period of at least five years any Prospectus it has published on or after 3 January 2018;
- details of a recognised corporate governance code that the board of directors of theAIM company has decided to apply, how the AIM company complies with that code, and where it departs from its chosen corporate governance code an explanation of the reasons for doing so2. This information should be reviewed annually and the website should include the date on which this information was last reviewed;
- the names of its directors and brief biographical details of each, as would normally be included in an admission document;
- a description of the responsibilities of the members of the board of directors and details of any committees of the board of directors and their responsibilities;
- where the AIM company is not incorporated in the UK, a statement that the rights ofshareholders may be different from the rights of shareholders in a UK incorporated company;
- whether the AIM company is subject to the UK City Code on Takeovers and Mergers, or any other such legislation or code in its country of incorporation or operation, or any other similar provisions it has voluntarily adopted; and
- details of its nominated adviser and other key advisers (as might normally be found in an admission document).
Responsibilities
Ultimately it is the AIM quoted company’s responsibility to keep their IR website up to date in accordance with the above guidance. However it is also a nominated advisor’s responsibility to make sure that a company complies with all rules, including Rule 26. A nominated adviser has a responsibility to inform the Exchange as soon as practicable if it believes that it or an AIM company has breached the AIM Rules for Companies. Failure to do so can result in penalties for both the company in question and the Nominated Advisor.
Penalties
If the LSE considers that an AIM company has contravened these rules, it may take one or more of the following measures:
- Issue a warning notice
- Fine the company
- Censure the company
- Cancel the admission of it’s AIM securities; and
- Publish the fact it has been fined or censured and the reason for that action.
As an example, in August 2007 the Exchange undertook an exercise to assess compliance with Rule 26 across all AIM companies. Further to this investigation the LSE took disciplinary action against nine AIM companies, resulting in the AIM Executive Panel fining them a total of £95,000 for failing to comply fully with the requirements of Rule 26. The fines ranged from £3,000 to £15,000, depending on the seriousness of the breach.
Source: London Stock Exchage – AIM Rules for Companies
Should you need advice or information about Rule 26 and the creation of Investor Relations websites, please get in touch with our dedicated AIM Rule 26 digital team.
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