«‘Irreversible’ decision. Reditus, the oldest technology company listed in Lisbon, is delisted by Euronext» (with João Santos Carvalho and Daniel Macedo Ferreira)

«The expulsion from Reditus, apart from being a novelty for those who make a living from stock market trading, also has no legal framework or precedent. An involuntary delisting is a kind of legal loophole, explain João Santos Carvalho and Daniel Macedo Ferreira, respectively partner and associate at the law firm SRS Legal.

‘Delisting - whether voluntary or at the initiative of the regulated market operator - does not, in itself, entitle shareholders to payment of compensation’ for the fact that the company is no longer listed on the stock exchange. However, they say, ‘in certain circumstances, it may give the shareholder the right to sell their shares for a certain consideration’. It all depends on ‘the circumstances in which this exit takes place’.

‘In fact, in the case of a voluntary delisting (which must follow the regime laid down in the Securities Code), the company is obliged to acquire, or appoint a shareholder or a third party who is obliged to acquire, the shares held by shareholders who have voted against the delisting,’ the lawyers explain. ‘This acquisition must take place within three months of the CMVM's approval of the voluntary exclusion from trading, and the consideration must be fixed in accordance with the law,’ they say.

However, this only applies when the delisting is voluntary. In the case of an involuntary delisting, as is the case with Reditus, the process will be more complex. ‘In the case of a delisting that occurs on the initiative of the regulated market management entity, the law does not provide for any (potestative) right for the shareholders to sell their shares,’ explain the SRS Legal lawyers. ‘Consequently,’ they add, the law does not provide for ’the right to receive any consideration as a result of that sale.»