Moving from limited to listed company
status has far-reaching implications:
you are suddenly responsible for other
people's money.
Many directors of AIM-listed companies
are entrepreneurs, not temperamentally
in tune with the need for compliance
and responsible action. This company
was a case in point.
A Company Law International consultant
acted as Company Secretary, guiding
the directors who were new to these
requirements. One non-executive director
traded his shares whilst in possession
of price-sensitive information. We
advised the board on the necessary
steps to warn the director, and finally
to dismiss him. We also put procedures
and documentation in place to guard
against any repetition of this incident.
Benefit
Company Law International provided
a stabilising influence on this
go-ahead company, ensuring the recognition
of its responsibility to shareholders.
