Passporting and Share: Difference between pages

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''European Economic Area (EEA) - financial services and other commercial activities''
A share in a company is a proportionate ownership right in the company.


Passporting is the right of financial services firms in the EEA to carry on permitted activities in other EEA states.


Notification to - and approval by - the regulator are required for both inward and outward passporting.
Its main features normally include:


- A right to a proportion of any residual assets of the company on a liquidation. 


<span style="color:#4B0082">'''''Equivalence and passporting'''''</span>
- A right to receive any dividends declared.


:"In brief, equivalence is the willingness of one regulator to accept that another regulator's rules achieve the same regulatory outcomes as their own, and so some element of cross-border activity can be allowed.
- A right to vote in general meetings of the company.


:Equivalence must be agreed, but is subject to negotiation, market by market.
- An obligation to subscribe equity capital of a fixed amount per share.


:Passporting is the acceptance that once permitted to trade in one state, a business can trade in another without further compliance requirements.


:For those within the European Economic Area (EEA), it is easy to forget that the principle of passporting applies beyond the much publicised world of financial services (FS)."
Historically, shares were evidenced by paper certificates.


:''The Treasurer magazine, March 2017, p12 - Technical briefing.''
More commonly, they are now recorded in electronic form.




== See also ==
== See also ==
* [[Brexit]]
* [[Allotment]]
* [[Equivalence]]
* [[Common stock]]
* [[European Economic Area]]
* [[Concert party]]
* [[European Union ]]
* [[Control]]
* [[Free movement of labour]]
* [[Dilution]]
* [[Prudential Regulation Authority]]
* [[Dividend]]
* [[Schengen Area]]
* [[Equity]]
* [[Single Market]]
* [[Equity capital]]
* [[Equity market]]
* [[FA 1985 Pool]]
* [[Flowback]]
* [[Issued share capital]]
* [[Liquidation]]
* [[Ordinary shares]]
* [[Preference shares]]
* [[Security]]
* [[Share capital]]
* [[Shareholder]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Financial_products_and_markets]]

Revision as of 13:10, 17 December 2020

A share in a company is a proportionate ownership right in the company.


Its main features normally include:

- A right to a proportion of any residual assets of the company on a liquidation.

- A right to receive any dividends declared.

- A right to vote in general meetings of the company.

- An obligation to subscribe equity capital of a fixed amount per share.


Historically, shares were evidenced by paper certificates.

More commonly, they are now recorded in electronic form.


See also

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