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12 January 2022

Better Finance: Shareholder Rights Directive II fails to deliver for European cross-border shareholders


Some of the main obstacles to shareholder engagement derive from the complex chains of intermediaries and the use of omnibus accounts – with intermediaries or nominees who hold shares for individual investors ...

To ensure sustainable development and a brighter future, shareholder engagement must be given a chance!

Despite the entry into force of the Shareholder Rights Directive II (SRD II) in September 2020, and the importance the European Union places on Shareholder Engagement and Corporate Governance – the set of rules and practices dictating a company's corporate strategy, risk management, environmental responsibility and ethical behaviour, as well as balancing the interests of the company's stakeholders through accountability, transparency, fairness and responsibility - the exercise of shareholder voting rights, especially across borders, continues to face substantial obstacles to this day.

Some of the main obstacles to shareholder engagement derive from the complex chains of intermediaries and the use of omnibus accounts – with intermediaries or nominees who hold shares for individual investors – rendering the exercise of shareholder rights more difficult and costly, thus limiting shareholder engagement.

  • Read the full Press Release below.

Better Finance



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