Do separately transferable rights fall under the definition of instruments of ownership as defined in Article 2(1)(61) of Directive 2014/59/EU (BRRD)?
Article 2(61) of Directive 2014/59/EU (BRRD) defines instruments of ownership as “shares, […] and instruments representing interests in shares or other instruments of ownership”.
Does it mean that separately transferable rights - the right (title) to be paid a dividend, the pre-emptive right to subscribe for shares (a rights issue), convertible bonds and bonds with warrants attached and the right, otherwise attached to a share, to be paid a liquidation share – shall be deemed for instruments of ownership?
The provision of Article 2(1)(61) BRRD defines instruments of ownership as “shares, other instruments that confer ownership, instruments that are convertible into or give the right to acquire shares or other instruments of ownership, and instruments representing interests in shares or other instruments of ownership”.
Thus, even separately transferable rights may fall under such definition, provided that all relevant requirements set forth therein are met under the applicable law. For example, the pre-emptive right to subscribe for shares would likely fall under the category of "instruments that […] give the right to acquire shares".
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