Abstract
The UK Alternative Investment Market (AIM) was launched in 1995 and has been a great success. In this chapter we examine the development of AIM and its attraction for both UK and overseas companies seeking a UK listing. We detail the structural characteristics of AIM examining the role played by the nominated advisor (NOMAD), and the corporate governance requirements for AIM companies. We highlight the distribution of companies on AIM from various overseas countries and from various industries. The key corporate governance disclosures drawn from annual reports pre and post AIM Rule 26 are discussed in mini-case studies based on four AIM companies, two being incorporated in the UK and two non-UK incorporated. We also contextualise AIM comparing it to other junior markets globally. Finally we have some concluding comments about AIM and its future development.
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Notes
- 1.
According to the LSE AIM Statistics 2011, where a company has more than one country of operation, and where no single country can be identified clearly as the main country of operation, the country of incorporation has been selected by default.
- 2.
The LSE AIM Website, May 2003 Press Release.
- 3.
Trowers & Hamlins Press Release, 17 June 2011.
- 4.
The Official List or Main Market now has two tiers; a premium listing retaining the standards that apply previously to Official Listed companies and a new Standard Listing with less onerous standards. All companies on the FTSE index classifications are required to be premium listed.
- 5.
LSE AIM Notice, 10 January 2008.
- 6.
LSE Inside AIM Issue 2, July 2010.
- 7.
The Code was revised in 2007 but there were no material changes and again in 2010. The new guide (2010) combines the content of both the previous guides.
- 8.
Company A’s AIM Rule 26 website.
- 9.
Company A’s AIM Rule 26 website.
- 10.
Company B’s AIM Rule 26 website.
- 11.
Company B’s AIM Rule 26 website.
- 12.
Company C’s AIM Rule 26 website.
- 13.
Company C’s AIM Rule 26 website.
- 14.
Company D’s AIM Rule 26 website.
- 15.
Company D’s AIM Rule 26 website.
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Mallin, C., Ow-Yong, K. (2013). The Development of the UK Alternative Investment Market: Its Growth and Governance Challenges. In: Cressy, R., Cumming, D., Mallin, C. (eds) Entrepreneurship, Finance, Governance and Ethics. Advances in Business Ethics Research, vol 3. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-3867-6_6
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