TR1 Info6 Nov 2019 11:03
Morning Guys. Yesterday i contacted Faron via email with regards to TR1 Notifications due to an amendment stated with May 2018 RNS. Faron have promptly responded...............
We are very pleased to notice that investors take the time and effort to review our policies and rules. We continue to work to make them as transparent and clear as possible.
As to your question regarding the amendment in the articles of association I refer to the point 13. In the AGM invitation dated 10 May 2018, which says:
13. Resolution on the amendment of the Articles of Association
The Board of Directors proposes that the following sentence will be removed from Article 17.1 of the Company's Articles of Association:
"Each shareholder shall also make a Notification when he becomes a party to an agreement or other arrangement that upon implementation would result in the holdings of the shareholder reaching, exceeding or decreasing below any of above-mentioned thresholds."
The Board of Directors proposes that sections i) - k) will be removed from Article 17.5 of the Company's Articles of Association.
The rationale for the amendment is the change in the corresponding legislation in Finland governing notification of major shareholdings.
So this amendment was done because of a change in legislation in Finland governing notification of major shareholdings, which was – to our understanding – related to the ”transparency directive” 2004/109/EU, which was changed back in 2013 with the intention to improve the efficiency of the transparency system, particularly with regard to the publication of information on corporate ownership. Corresponding changes were implemented in the flagging rules of Finnish Securities Markets Act.
These flagging rules do not as such apply to Faron (as the company is not listed on a regulated market), and therefore - based on the recommendation of AIM Rule 17 – Faron has included the flagging rules into its articles of association. The amendment in the articles of association in the 2018 AGM was done to get the articles of association in line with the present legislation.
This does not change the rules that govern the major shareholders responsibility to issue a TR1 if they reduced their holdings. In that respect the situation remains unchanged.
Thank you very much of your interest,
Yrjö
Yrjö E K Wichmann
VP, Funding & IR
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