Commission consults on shareholders’ rights

16 September 2004

In accordance with the Corporate Governance Action Plan of May last year, the Commission launched a public consultation on facilitating the exercise of basic shareholders’ rights in company general meetings and solving problems in the cross-border exercise of such rights, particularly voting rights. The consultation paper provides initial indications as to the possible structure and content of a forthcoming directive on shareholders’ rights.

The main issues on which the Commission is seeking responses are:

The scope – listed companies, i.e. whether the proposal should only apply to EU listed companies.

Control of voting right - A solution has to be designed for shareholders’ rights and intermediaries’ obligations, so as to determine the entitlement of the ultimate investor to control the voting right and decide how the votes attaching to his shares should be cast.

Admission to and participation in General Meetings - The Commission considers to prevent blocking requirements as a condition to participate in a vote.

Shareholders’ rights in relation to the General Meetings - The Commission considers the establishment of minimum standards allowing voting in absentia.

Dissemination of post-General Meetings information - The Commission considers whether an obligation should be put on companies to disseminate the results of the vote or to confirm the execution of vote instructions.

The deadline for responses is 16 December 2004.

Commission press release
Consultation paper

© European Commission