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Concert party agreements


These are arrangemerits between two or more persons acting in concert each to obtain shares in a pubhc company with the object of pombining their holdings at a suitable date. By acting individually with a private agreement to operate in concert they hope thereby to evade the provisions of the Companies Acts relating to obligatory disclosure of interests in a company's shares.

The 1981 Act provided that such concencert party agreements should be subject to similar requirement as to written notification of interests in shares in the target company as if the shares were held by one person only. The company concerned is obliged to maintain a register of material interests in its shares. This latter requirement was introduced in the 1967 Companies Act and substantially reinforced in the 1981 Act.


Reference: The Penguin Business Dictionary, 3rd edt.