Home News Vodafone and Emirates Telecommunications Group Co. Must Comply with U.K. Government Requirements

Vodafone and Emirates Telecommunications Group Co. Must Comply with U.K. Government Requirements

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The U.K. government has issued requirements for Vodafone Group and Emirates Telecommunications Group Co., the largest shareholder, emphasizing that the latter’s potential influence at Vodafone could pose a national security risk.

According to the Secretary of State’s statement on the government’s website, the potential risk to national security stems from Vodafone’s involvement in the U.K. government’s telecommunications initiatives and its contribution to cyber security. Vodafone’s role as a supplier to government departments that support national security could potentially create a security risk.

Emirates Telecommunications, known as E&, currently holds a 14.6% share in Vodafone.

In order to address these concerns, the companies are mandated to establish a National Security Committee responsible for overseeing sensitive work related to Vodafone and its affiliates that impacts or concerns the national security of the U.K.

Additionally, they are required to inform the government of any changes to their relationship agreement and adhere to regulations concerning Vodafone’s board composition, as well as any modifications to board committee membership and functions.

Last May, Vodafone and E& entered into a strategic relationship, with E& becoming a significant shareholder in the U.K. telecom company.

As part of this agreement, E&’s chief executive was slated to join the Vodafone board as a non-executive director as long as E& maintained its 14.6% shareholding. If its shareholding exceeded 20%, E& would also have the opportunity to nominate a second non-executive director, as declared by Vodafone at the time.

“We are pleased to have received clearance in our home market for our strategic relationship agreement with E&, and for E& to take a seat on our board,” stated a Vodafone spokesperson.

E& did not provide an immediate response when approached for comment.

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