In today’s briefing:
- Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025
Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025
- Starting January 2025, there will be a major change in the regulation regarding the use of treasury shares during a company spinoff process.
- The main change involves the practice of allocating newly issued shares to existing treasury shares held by companies during corporate spinoffs.
- This practice will now be banned which should help to reduce the wrongful use of treasury shares and improve minority shareholders’ rights.