Objectives
The objective is to ensure that the 51% floor and the 10% cap are consistent with the agreement set out in the Confidence and Supply Agreement.
There is a secondary objective, which is to ensure that any change is consistent with the wider regime of controls over the 10% cap which the Bill puts into place. Those include providing a penalty that responds to a breach, in circumstances when the SOP looks to control not only voting interests, but also economic interests.
The penalty has three separate objectives: to ensure no non-Crown shareholder has a relevant interest in shares or other securities that carry with them more than 10% of the voting rights in a company; to ensure no non-Crown shareholder has a relevant interest in shares or other securities that carry with them more than 10% of the economic interest in the company; and to incentivise shareholders to remain within the 10% cap without the need for further enforcement.
These changes must be approved by Cabinet on or before 18 June 2012.
