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CAC meaning

What does CAC mean?
CAC (collective action clause) describes a bond provision allowing a specified super‑majority of holders, usually by outstanding principal, to approve amendments or a restructuring that binds all holders, including dissenters. Used most prominently in sovereign debt, CACs facilitate orderly sovereign debt restructurings and limit holdout creditors. The term is a market description rather than one defined in UK legislation or case law. Under English‑law and Irish‑law governed sovereign bonds, CACs are standard and often follow ICMA model wording. They may include aggregation features enabling votes across multiple series (single‑limb or double‑limb mechanics). Since 1 January 2013, euro‑area sovereign bonds must contain standardised CACs, which applies to Ireland but not the UK; nonetheless, English‑law bonds issued by many sovereigns commonly include CACs. Key features typically include high voting thresholds and quorum, express scope to modify payment and other core terms, and prescribed procedures for bondholder meetings or written resolutions. In corporate bond trust deeds, similar majority‑amendment and consent‑solicitation provisions exist (often via extraordinary resolutions), though they are not always labelled CACs. In loan agreements, comparable outcomes are achieved through “majority lenders” provisions rather than CACs. Usage and effect are broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland.
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View the related News about CAC

NEWS
Employment Appeal Tribunal refuses to overturn CAC ruling: HSBC entitled to amend European Works Council agreement and relocate central management to Ireland post‑Brexit; EasyJet distinguished; Irish implementing law applies

HSBC European Works Council v HSBC Continental Europe [2024] EAT 104 The Employment Appeal Tribunal (EAT) refused to overturn the Central Arbitration Committee’s (CAC) 2021 determination, holding that HSBC could amend its European Works Council (EWC) agreement and shift operations outside the UK on the UK’s exit from the EU and the European Economic Area (EEA). Judge Akhlaq Choudhury stated that it was, in his view, reasonably clear that the parties had intended that any change arising from an alteration in membership status would likewise lead to revisions to the list of operations. The judgment records that in 2021, a year after the UK formally left the EU, HSBC relocated its central management—and, by extension, its EWC—to Ireland. The EWC contended that the UK unit ought to have been allowed to continue operating. It relied on a Court of Appeal decision which had permitted the works council of the low-cost airline EasyJet to carry on after Brexit, the judgment said...

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NEWS
China finalises ‘minor mode’ guidelines for devices, apps and app stores: time limits, night-time curfew, parental controls, content mandates promoting socialist values, and eased compliance duties

China’s mobile smart terminals, applications, and application-distribution platforms are now covered by a set of guidelines for building a ‘minor mode’, intended to improve online content and curtail Internet addiction among minors. The CAC-drafted guidelines set out a framework for configuring this mode and allocate responsibilities across the three terminals. It also provides a structured basis for the necessary settings, defining duties for each participating party. As a key compliance reference, they support the rollout of the Regulations on the Protection of Minors on the Internet, which specify the need to establish a minor mode while leaving space to refine particulars such as permitted hours, session length, features, and material. Mobile smart terminals, applications, and application-distribution platforms will collaborate in building the mode, seeking to enhance time-management controls, alongside content curation and safeguards for functionality, with the goal of promoting stronger time governance, content development, and functional security...

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NEWS
UK employment law weekly: ERA 2025 rollout, FWA launch, NMW/SSP updates, CAC recognition reforms, RIDDOR consultation, new GDPR basis, TUPE call for evidence, conditional offer contract case

In this issue: Employment Rights Act 2025 Employment contract Whistleblowing Health and safety Data protection and employee information TUPE and asset purchases New and updated content Dates for your diary Trackers Employment resources on Lexis+® LexTalk®Employment: a Lexis®Nexis community Daily and weekly news alerts HMRC updates National Minimum Wage Manual for ERA 2025 HMRC has revised its National Minimum Wage Manual to align with amendments introduced by Part 5 of the Employment Rights Act 2025 (ERA 2025). Eighteen pages have been updated, covering: particular occupations and priority groups (gangmaster-supplied labour and migrant workers) records, evidential requirements, enforcement powers and offences steps to follow once a Notice of Underpayment is issued, including where an employer files an appeal disclosure of National Minimum Wage details to the Fair Work Agency (FWA) For a concise overview of the changes, see: Updates: National Minimum Wage Manual...

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View the related Practice Notes about CAC

PRACTICE NOTES
Practitioner’s guide to auction purchases: legal packs, RICS CAC conditions, contracts, VAT/TOGC, pricing and completion (England and Wales)

Buying at auction Securing a property at auction brings several advantages over purchasing on the open market: you could obtain the property at a favourable price the auction route is swift lots at auction often present scope for improvement and adding value if the property is tenanted, income can be received from completion A buyer faces funding risk if a mortgage is needed for the completion monies. The contract becomes binding the instant the hammer falls and, therefore, if an unconditional mortgage offer for the purchase is not in place before the auction, the buyer carries the risk. Legal pack The seller’s legal advisers prepare a legal pack for the lot...

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PRACTICE NOTES
Trade union recognition in Great Britain: levels, collective bargaining, voluntary and statutory Schedule A1 procedures (CAC), and territorial scope under TULR(C)A 1992

An employer might recognise a trade union for various purposes, and at any of several possible levels. Conversely, even if a significant proportion of the workforce belongs to a particular trade union, the employer concerned may still choose not to recognise that union for any purpose, or at any level. Regarding purpose, an employer can grant recognition for a set of specified matters connected to its relationship with its workforce, whilst declining recognition in relation to other, comparable matters. Levels of trade union recognition Union recognition may exist at different levels in terms of the breadth of employees covered and the premises included across the organisation. This can vary between sites and employee groups within the same employer...

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PRACTICE NOTES
Trade union recognition changes, bargaining unit variations and derecognition: CAC procedures under TULR(C)A 1992 Sch A1 (Great Britain)

This Practice Note explores the processes for altering union recognition arrangements, especially where the bargaining unit is no longer suitable or has stopped existing. It further assesses the implications and outcomes of the Central Arbitration Committee (CAC) establishing a new bargaining unit. The Note then reviews the range of situations in which derecognition might occur in practice. Administrative requirements Any application to the CAC made under the procedures outlined here for changes affecting bargaining units must satisfy relevant specified requirements contained in Schedule A1, Part III to the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992)...

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