PIPE and Parliamentary supremacy: Difference between pages

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imported>Doug Williamson
(Expand quote - source - Reuters - https://www.reuters.com/business/aerospace-defense/bransons-virgin-orbit-list-via-spac-merger-32-bln-valuation-2021-08-23/)
 
imported>Administrator
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''Special purpose vehicles - acquisitions - Special Purpose Acquisition Companies - private equity.''
''UK law''.
The historical principle in UK law that the UK Parliament was 'supreme' in its law-making powers.
This principle was fundamentally affected when the UK joined the EU in 1973.


Abbreviation for Private Investment in Public Equity.
Parliamentary supremacy meant that:


A PIPE is an arrangement in which private financial investors take minority stakes in a SPAC, at a discount to the market price of the SPAC’s shares.
1) The UK Parliament was able to make UK law as it saw fit either by repealing earlier statutes, over-ruling case law or by making new law.  


The purpose is to support the financing of the SPAC's combination with its acquisition target.
2) No UK Parliament could bind its successor.  Parliament could not make laws that a subsequent Parliament was prevented from altering or repealing.  


3) The UK courts had to apply the relevant statute law enacted by the UK Parliament.
By joining the EU, UK Parliamentary supremacy was fundamentally affected and it is no longer true to say that only the UK Parliament has the power to make new law for the UK. 
The effect of becoming a member of the EU was to cede the UK Parliament's supremacy on certain matters of European Union law which have direct effect on member states. 


:<span style="color:#4B0082">'''''Example - Virgin Orbit's $100m PIPE'''''</span>
The position now is that:


:"Virgin Orbit, a small satellite launch service provider, is going public through a merger with a blank-check vehicle that values it at about $3.2 billion.
1) The EU may pass legislation directly for the UK.


:The deal with NextGen Acquisition Corp. II, announced on Monday, includes $100 million in funding from Boeing Co, AE Industrial Partners and others in the form of private investment in public equity, or PIPE...
2) The UK cannot, generally, make laws that conflict with EU law.  


:Spun-off from Branson's space tourism company Virgin Galactic Holdings Inc in 2017, Virgin Orbit reached space for the first time in January when it delivered ten NASA satellites to orbit, after a failed attempt last year.
3) Overall, EU law enjoys supremacy over domestic national law and is applied in priority to domestic law.
 
:The deal is expected to provide $483 million in proceeds to the combined company, which will list on the Nasdaq under the symbol "VORB" after the merger."
 
:''Source - Reuters - 24 August 2021''




== See also ==
== See also ==
* [[De-SPAC]]
* [[European Union ]]
* [[Dilution]]
* [[Sovereignty]]
* [[Disclosure]]
* [[Initial public offering]]
* [[Operating company]]
* [[Private equity]]
* [[Public company]]
* [[Reverse takeover]]
* [[Shell company]]
* [[SPAC]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Revision as of 14:20, 23 October 2012

UK law. The historical principle in UK law that the UK Parliament was 'supreme' in its law-making powers. This principle was fundamentally affected when the UK joined the EU in 1973.

Parliamentary supremacy meant that:

1) The UK Parliament was able to make UK law as it saw fit either by repealing earlier statutes, over-ruling case law or by making new law.

2) No UK Parliament could bind its successor. Parliament could not make laws that a subsequent Parliament was prevented from altering or repealing.

3) The UK courts had to apply the relevant statute law enacted by the UK Parliament.

By joining the EU, UK Parliamentary supremacy was fundamentally affected and it is no longer true to say that only the UK Parliament has the power to make new law for the UK. The effect of becoming a member of the EU was to cede the UK Parliament's supremacy on certain matters of European Union law which have direct effect on member states.

The position now is that:

1) The EU may pass legislation directly for the UK.

2) The UK cannot, generally, make laws that conflict with EU law.

3) Overall, EU law enjoys supremacy over domestic national law and is applied in priority to domestic law.


See also