Significant shareholders are being reminded to recognise the importance of timely and accurate disclosure of their holdings and voting rights, after Sir Ken Morrison was fined £210,000 for breaching the Disclosure and Transparency Rules (DTR). The Financial Services Authority (FSA) handed down the fine after ruling that he failed to disclose his reduced shareholding and voting rights in Wm Morrison Supermarkets Plc.

Between 2009 and 2010, Sir Ken substantially reduced his shareholding and voting rights from over six per cent to 0.9 per cent. He failed to notify the company on four separate occasions when his voting rights fell below six, five, four and three per cent.

Although Sir Ken did not financially benefit from these breaches, his failure to notify Wm Morrison of the changes resulted in the company not being in a position to update the market in accordance with the DTR rules, the FSA said. He cooperated with the regulator throughout and agreed to settle at an early stage, entitling him to a 30 per cent reduction in the penalty.

Tracey McDermott, Acting Director of Enforcement and Financial Crime, said Sir Ken should have been aware of his obligations. She added: "It is important that significant shareholders recognise that timely and accurate disclosure of their shareholdings and voting rights is a fundamental component of a properly informed securities market."

Simon Deans, Practice Group Leader at B P Collins, comments: "This is a good example of how easy it can be to fail to comply with the technicalities of company law and emphasises the value of good professional advice."