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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10587
Experience:  Barrister 17 years experience
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If the parent company of a group of private limited companies

Resolved Question:

If the parent company of a group of private limited companies goes public do they have to declare in their admission documents that their CEO and one of their private limited companies is under investigation following a raid by trading standards officers. A prosecution is due to be heard next April and will involve the CEO and at least 9 self employed sales reps.
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1. Yes, particulars of an investigation by the Trading Standards Officers would have to be disclosed if a company is going public via an IPO. This is because it counts as a material risk and so should be listed in the Prospectus of Listing. Otherwise, there is a material risk of misleading investors. An authorised listing agent will not list a company if all material risks have not been disclosed by the Directors as otherwise the underwriters of the IPO will bear a liability to any disgruntled investors who buy the stock in the IPO. So the listing agent and the underwriters will insist upon full disclosure being made by the Directors of the potential prosecution by the Trading Standards board.
Customer: replied 1 year ago.
Thanks for your reply. Would you therefore advise that I contact trading standards regarding or the stock exchange itself
Expert:  Buachaill replied 1 year ago.
2. What is your interest? Are you a shareholder, a purchaser of shares, a director of the company getting listed?
Customer: replied 1 year ago.
I am a self employed sales rep for the company being prosecuted by trading standards but am not personally involved in that. Just concerned that somethings the parent company does is wrong
Expert:  Buachaill replied 1 year ago.
3. The people you should contact are either the Nominated Agent or the Underwriters for the issue. The Nominated Agent is the member of the Stock Exchange who is sponsoring the listing. The Underwriters are the market makers who guarantee the price for the first 30 days of listing. Additionally, you should write directly to the Stock Exchange as they ultimately have overall responsibility for any listing. Please RATE the Answer as otherwise your Expert doesn't get paid a share of the monies you have deposited with the website.
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