EMIs exempt from Prospectus Directive?
Currently, all non EU-based foreign companies are required to issue a lengthy prospectus every time they want to make equity awards to employees in European subsidiaries, unless the shares are quoted on EU stock markets.
The European Commission is proposing to exempt all employee share ownership offerings within EU member states as long as they produce a simple fact sheet of what they are doing and why.
However, companies outside of the EU, such as those in US, are claiming that this amounts to unfair discrimination. Most US companies do not operate on the EU stock exchange.
The European Commission claims that the proposal of 24th September, will save more than €18m once it has materialised.
For more information on changes to EMIs and the benefits to companies, please contact us on 020 8949 5522.