Shareholders with smaller UK company stocks in their portfolio may be in for a disappointment if they wish to take up new share issues. Many such companies are now excluding the Republic of Ireland from new issues on the grounds that registering the prospectus with the Companies Office - as required under 1992 Irish legislation is too onerous.

In a prospectus recently issued by Close Brothers Corporate Finance on behalf of McDonnell Information Systems Group, Ireland was the only country specifically mentioned where shareholders were forbidden from taking up the new share offer. Others countries were Australia, the US and South Africa for similar registration reasons.

John Crowe, a director of KPMG's private clients division told Family Money that the registering of an overseas prospectus with the Companies Office is as a result of 1992 legislation which implements the EU Public Offer Directive. A not particularly expensive undertaking, "nevertheless, many smaller British companies with only a few Irish shareholders are opting not to register the share offer here."

"I think Irish shareholders who find themselves in this position should complain both to the Irish and London stock exchanges," says Mr Crowe.