The AMF issued a report on securities lending before general meetings of shareholders. To ensure that general meetings of shareholders are properly conducted, efforts must be continued to promote the active participation and effective involvement of shareholders in meetings.
Only by withholding the voting rights attached to temporarily owned securities or shares that are covered by special hedges, can temporary holders be prevented from unduly influencing companies' strategic decisions in certain circumstances.
The working group recommends that any person that possesses a number of shares making up a minimum percentage inform the company and market regulator on the third day before the general meeting (“record date”) of the number of shares held, specifying the number of shares acquired following a temporary transfer, along with the identify of the transferor. By making it possible to distinguish long-term shareholders from those that have acquired shareholder status through temporary borrowing, such disclosures will help to better gauge the influence and objectives of different shareholders.
Report
© AMF - Autorité des Marchés Financiers
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article