RE: Accumulating3 Feb 2024 13:19
AIM companies are required to follow a recognised corporate governance code and disclose how they comply with it on their website54. They also need to appoint a nominated adviser (nomad) who acts as a regulator and a guide for the company.
If an AIM company runs out of cash and wants to go private, it would need to follow the rules of the Takeover Code, which applies to all public companies in the UK. The Takeover Code aims to protect the interests of shareholders and ensure fair and equal treatment of all parties involved in a takeover bid.
According to the Takeover Code, a company cannot be taken private without the approval of at least 75% of the shareholders who vote on the offer. The offer must also be fair and reasonable, and the directors must act in the best interests of the company and the shareholders.
If the shareholders reject the offer or the company fails to secure a deal with a partner, it may have to resort to other options, such as issuing new shares, selling assets, or seeking debt financing. However, these options may also have drawbacks, such as diluting the existing shareholders, reducing the value of the company, or increasing the risk of default.