JERSEY companies will be subject to the same takeover and merger rules as UK firms, if a new law is approved.

Until now, the UK Panel on Takeovers and Mergers has not had the legal power to regulate business activities in Jersey, although in practice it has had a non-statutory role.

Specifically, the panel protects the interests of shareholders with minority interests in a company and tries to ensure they are treated in the same way as large institutional shareholders, for example that they are sent the same information and have the same voting rights.

If the proposed Companies (Takeovers and Mergers) Jersey Law is adopted by the States, when it is debated on 15 July, it will bring the Island into line with European Union legislation.

Economic Development Minister Philip Ozouf said: ‘We are delighted to bring in this new law which will create the opportunity of continuing this highly beneficial arrangement with the Takeover Panel and of putting the relationship on a new statutory footing.’