Contained in the Schedule to the Takeovers Regulations 2000, the Takeovers Code (Code) is based on a broad prohibition, known as the "fundamental rule", against any person becoming the holder or controller of more than 20% of the voting rights in a code company (rule 6, Code). That broad prohibition is then subject to several exceptions and it is those exceptions which contain the detailed regulation of takeovers.

For more information on the Code, see Practice note, Application of the Takeovers Code, the Takeovers Panel and enforcement of the Takeovers Code.