By Evarist Baimu Nyaga Mawalla - Home

However, it seems clear that, whether or not there is a legally binding contract, there isan understanding between the bodies whose representatives are members of the panel thatthey will take all such steps, by way of disciplinary proceeding against their members orotherwise, as are reasonably and properly open to them to ensure that the code and therulings of the panel are observed. Similarly with the Bank of England; its weightyinfluence in the City of London is directed to the same end. Indeed, the leading partplayed by the Bank of England in setting up and running the panel is one of the matters,which must be kept in mind if the true role of the panel is to be evaluated.Another matter which must be noted is the involvement of t he Stork Exchange,one of the bodies appointing a representative on the panel.Since the code is concerned with take-overs and many, if not most, of theimportant take-overs will be of companies whose shares are listened on the StockExchange by companies whose shares are similarly listed, the Stock Exchange is muchconcerned with the matters which the code seeks to regulate. In turn a major element inthe enforcement of these regulations is the sanctions, which the Stock Exchangepossesses over listed companies.In this regard it is important also to note that, whatever may have been theposition in the past, it is clear that today the Council of the Stock Exchange is performinga public duty when deciding whether or not to admit a security to official listing andwhether or not to discontinue such a listing.There is no longer a formal listing agreement entered into by companies seeking a listingof their securities. The council now has all the power required or permitted to beconferred on the competent authorities” by, inter alia, the admission directive of theCouncil of the European Communities of 5 March 1979 (79/279/E.E.C.): see the StockExchange (Listing) Regulations 1984. Articles 15 of that directive expressly provides thatmember states shall ensure that decisions of the competent authorities refusing theadmission of a security to official listing or discontinuing such a listing shall be subject tothe right to apply to the courts. Such an application in this country would take the form ofan application for judicial review.From this it is evident that the activities of the council of the Stock Exchange inlaying down requirements which a company must observe if it is to obtain and retain anofficial listing, and in interpreting those requirements and adjudicating upon allegedbreaches of those requirements, are activities which are subject to judicial review.Today those requirement include observing the code. In paragraph 6.15 of itsofficial publication “Admission of Securities to Listing,” the council states that it attaches“great importance” to observance of the code.The code contains a statement of general principles. For example that allshareholders of the same class of an offeree company must be treated similarly by anofferor, and that during the course of a take-over or when one is in contemplation neitherthe offeror nor the offeree nor their advisers may furnish information to someshareholders which is not made available to all.176