The London Metal Exchange (LME) said it has applied to form a new holding company because of uncertainties relating to lawsuits filed over the 1985 tin crisis. The new company to be called The London Metal Exchange Ltd would replace a two-tiered committee and board structure with a single managing board by the end of July. The exchange said it took the steps after the Securities and Investments Board said unresolved legal tussles resulting from the tin crisis of October 1985 might prevent acceptance of the LMEs application to become a Recognized Investment Exchange. The exchange currently is run by The Metal Market and Exchange Company Ltd which is facing a law suit linked to tin. The assets needed to run the exchange will be transferred to the new company at fair market value it added.
LEGAL DISPUTES FORCE NEW HOLDING COMPANY FOR LME