Mon. Mar 30th, 2020

Ryanair shields itself against a hard Brexit

Ryanair shields itself against a hard Brexit


MadridUpdated:

Ryanair will impose restrictions on British shareholders in its capital in case of a Brexit without agreement or «difficult» as a measure to ensure that the company and its subsidiaries will continue to comply with European regulations that demands that more than 50 percent of the company's property be in community hands, complying with the property and control requirements included in the European Union Regulation 1008/2008.

The decision, approved last Friday by the board of directors, will come into effect as of the date when the United Kingdom ceases to be considered as a member state of the EU and will assume that the shares held by British investors are considered as "restricted actions", which implies that they will not have the right to attend, speak or vote at the general shareholders' meetings convened while they have that consideration.

Likewise, the acquisition of new ordinary Ryanair shares will not be allowed to investors from non-EU countries, as the 'low cost' announced last February 5th. Accordingly, as of the date of departure from the United Kingdom of the EU British citizens will not be able to buy Ryanair shares.

In a statement, Ryanair explains that these resolutions are part of its contingency plans in the face of an eventual Brexit messy and will remain in force until its board of directors determines that there is no risk to the company's licenses in relation to the property and control of capital.

Within the framework of its contingency plan, Ryanair obtained in January from the British civil aviation authority (CAA) an Air Operator Certificate (COA), which will allow it to operate routes within the United Kingdom and outside the European Union after Brexit if necessary.

The airline industry is one of the most sensitive to leaving the UK from the EU due to legal uncertainty, which would be generated in the event that both parties did not reach an agreement in aviation, as it is considered as a third country.

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