On 17 February the London Stock Exchange published AIM Notice 36, confirming the changes to the AIM Rules for Companies arising out of the proposals made in AIM Notice 35. The changes relate to disclosure of directors' remuneration and to electronic communication with shareholders relating to accounts and reverse takeovers.

Directors' Remuneration
AIM Rule 19 has been amended to require disclosure in the annual accounts of the remuneration received in that financial year by each director. Following some clarification as a result of feedback on the proposed draft Rule, remuneration is now defined as:

• emoluments and compensation, including any non-cash benefits received
• share options and other long term incentive plans, including information on all outstanding options and/or awards
• value of any contributions paid by the company to a pension scheme.

The London Stock Exchange has also confirmed that the information on directors' remuneration is not required to be audited.

This new disclosure requirement must be implemented by AIM companies with a financial year end on or after 31 March 2010.

Electronic Communication

The guidance notes to AIM Rules 14 and 19 have been amended with immediate effect so that all AIM companies may now use electronic communications (including via websites) to send accounts and reverse takeover admission documents to shareholders. This was already the position for AIM companies subject to the UK Companies Act 2006, but now extends to overseas companies provided that they comply with the amended guidelines and are not prevented by their constitution or any legal requirements in their country of incorporation.

Further Information
Click here for AIM Notice 36, which includes the detailed Rule changes.

Contact Us
For further information, please contact:

Danielle Harris
Professional Support Lawyer
020 7002 8542
danielle.harris@mms.co.uk