Global Capital Markets

Back in July 2002 ProShare produced recommendations
with regard to the Dematerialisation of Share Certificates.
The thrust of our recommendation is to issue all
certificated shareholders with a pin number relating to
their shareholding, and at the same time make the share
certificate invalid.
Also embedded in the proposal is the abolition of the
distinction between legal and beneficial shareholders,
enabling all shareholders to be treated equally in their
ability to receive shareholder communications as well as
vote.
Much of the original ProShare paper has now been
included within draft legislation forming part of the
proposed Company Law Reform bill, now in consultation.
Clearly this is a big win for the fair treatment of private
shareholders, many of whom have been disenfranchised
via nominees accounts. It also shows the important work
ProShare can perform in bridging the gap between
companies and their private shareholders.
It is expected that the Bill will be enacted during 2006
with implementation in 2007.
The consultation group is being coordinated under the
aegis of the European Securities Forum and is being led by
UBS with representation from brokers, the LSE, registrars,
Crestco and industry associations. More information can
be obtained from Werner Frey at the European Securities
Forum by calling 020 7478 4210.