Companies Act 2014 section 1087P

Representation of applicable securities

Section 1087P confirms that nothing in this Chapter prevents a PLC from arranging for its securities to be held in electronic book-entry form through a central securities depository.

• A PLC may arrange for its applicable securities to be represented in book-entry form through a central securities depository or its nominee.
• This can be achieved either by immobilisation (physical certificates held centrally while ownership is recorded electronically) or by dematerialisation (securities exist solely as electronic records with no physical certificates).
• Nothing in this Chapter of the Companies Act restricts or affects a PLC's ability to use these arrangements.
• This provision was introduced by the European Union (Dematerialised Securities) Regulations 2023 to ensure compatibility with modern electronic settlement systems.