Ryanair imposes restrictions on British shareholders before a hard ‘Brexit’

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 require more than 50% ownership of the company is 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 from 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 “shares restricted “, implying that they will not have the right to attend, speak or vote at the general meetings of shareholders 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. As a result, from 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 ownership 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 the ‘Brexit’ if necessary.

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