UK Law and Practice Contributed by: Paolo Palmigiano, Rachael Roberts, Helen Farr, Debbie Heywood and Louise Popple, Taylor Wessing LLP
1. Legal System 1.1 Legal System and Judicial Order The UK is a common-law jurisdiction, primarily built on case law, where the outcomes of previ - ous legal cases set precedents for future cases. The UK courts are arranged in a hierarchy. At the base are magistrates’ courts and county courts, dealing with minor criminal offences and civil matters, respectively. Above these are the Crown Court and High Court, which handle more serious criminal cases and significant civil disputes. The Court of Appeal sits above these courts, and reviews cases from them to ensure the correct application of law. The Supreme Court is the highest court in the UK; it provides final judgments on points of national importance and clarifies laws that affect everyone. There are also tribunals that specialise in par - ticular areas, such as employment or immigra - tion. These tribunals make decisions within their specific field, but can be appealed to the higher courts. While judges create common law, statues passed by the UK Parliament take precedence over all case law. This combination of statute law and common law ensures both a democratic input from Parliament and a detailed interpreta - tion by judges based on precedent. 2. Restrictions on Foreign Investments 2.1 Approval of Foreign Investments While the UK does not have a specific foreign investment regime, in 2022 it introduced the National Security and Investments Act 2021
(NSIA), which applies to investors of any coun - try, including UK investors. There is a require - ment for a mandatory notification if the target is active in one of 17 key sectors of the economy (and within the definition of those sectors in the Act). Clearance must be obtained prior to clos - ing (with substantial fines for non-compliance). The 17 sectors are as follows:
• advanced materials; • advanced robotics; • artificial intelligence (AI); • civil nuclear; • communications; • computing hardware;
• critical suppliers to government; • cryptographic authentication; • data infrastructure; • defence; • energy; • military and dual use; • quantum technologies; • satellite and space technologies; • suppliers to the emergency services; • synthetic biology; and • transport.
Notifiable transactions are those where there is an increase in shareholding and voting rights from:
• 25% or less to more than 25%; • 50% or less to more than 50%; • less than 75% to 75% or more; or
• the acquisition of voting rights that enables or prevents the passing of any class of resolu - tion governing the affairs of the entity being acquired. The Act also introduces a voluntary filing if the target is outside the definitions of the 17 key
855 CHAMBERS.COM
Powered by FlippingBook