Shareholder votes at risk in shake-up of City rules

SHAREHOLDERS risk losing their voting rights if plans to attract fast-growing companies to the UK are given the green l i ght, bodies representing investors have warned.

Two sweeping reviews commissioned by the Government are expected to propose shakeups to London Stock Exchange rules t o attract t echnology titans and entrepreneurs.

One review, led by former Worldpay boss Ron Kalifa, will recommend that financial technology companies can float just a 10 per cent stake in their business, rather than the current minimum of 25 per cent.

The review, which will be handed to Chancellor Rishi Sunak next month, will also call for company owners to have the option of greater voting rights than ordinary shareholders.

The idea is to give entrepreneurs more control of their businesses, which could help t hem to f end off takeover approaches.

A separate review into stock exchange rules, led by Lord Hill, is also expected to make call s f or owners to r et ai n greater control.

The Investment Association, which represents global fund giants such as Schroders and BlackRock, i s against t he plans. Alan Beaney, chief executive of wealth manager RC Brown, said: ‘Company owners want to have their cake and eat i t . You’re disenfranchising shareholders. I think it’s a move backwards.’