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Ryanair, Wizz strip UK shareholders of voting rights to protect EU licences
29th Dec 2020 13:03
(Sharecast News) - UK shareholders in Ryanair and Wizz Air will have their voting rights removed after the end of the Brexit transition period, the two London-listed budget carriers announced as they moved to protect their European licences.
Ryanair said it would proceed with plans to treat so-called ordinary or depositary shares as restricted shares if they are owned by non-EU nationals, including British citizens.
It keeps the two airlines in line with European ownership regulations which require be directly or indirectly majority-owned and effectively controlled by EU citizens, or those of some other EU-affiliated countries such as Norway and Switzerland in order to fly between member states.
Wizz Air said that if it did not take action, around 80% of its shares would be held by non-EU citizens as the UK leaves the EU. About 60% of its shareholders will be sent restricted share notices to stop them from attending future meetings.
Ryanair said it will not require British citizens to sell their shares, but will ban them from showing up to, speaking at or voting at shareholder meetings.
"These resolutions will remain in place until the board of the company determines that the ownership and control of the company is no longer such that there is any risk to the airline licences," Ryanair said in a statement.
The measures had previously been signalled by both airlines as they sought to protect their rights to fly within the bloc's borders after Brexit.
Last week easyJet, which is also based in the UK, said it would restrict voting rights of some shareholders to make sure EU citizens own 50% of the company.
Ryanair said it would proceed with plans to treat so-called ordinary or depositary shares as restricted shares if they are owned by non-EU nationals, including British citizens.
It keeps the two airlines in line with European ownership regulations which require be directly or indirectly majority-owned and effectively controlled by EU citizens, or those of some other EU-affiliated countries such as Norway and Switzerland in order to fly between member states.
Wizz Air said that if it did not take action, around 80% of its shares would be held by non-EU citizens as the UK leaves the EU. About 60% of its shareholders will be sent restricted share notices to stop them from attending future meetings.
Ryanair said it will not require British citizens to sell their shares, but will ban them from showing up to, speaking at or voting at shareholder meetings.
"These resolutions will remain in place until the board of the company determines that the ownership and control of the company is no longer such that there is any risk to the airline licences," Ryanair said in a statement.
The measures had previously been signalled by both airlines as they sought to protect their rights to fly within the bloc's borders after Brexit.
Last week easyJet, which is also based in the UK, said it would restrict voting rights of some shareholders to make sure EU citizens own 50% of the company.