EC focuses on voting rights for shareholders

BRUSSELS – In mid-May, the European Commission (EC) launched a public consultation on minimum standards that should apply to shareholders’ rights in listed companies. The EC said the consultation focuses in particular on voting rights, in order to remove "certain practical and legal obstacles that currently hinder the exercise of these rights in a cross-border context". Responses, says the EC, will be incorporated into a forthcoming proposal for a possible future directive, forming part of the Commission Action Plan on Corporate Governance . The deadline for responses is July 15.

The main issues included in the consultation paper include the transparency of stock lending agreements and the status of depositary receipt holders; the dissemination of relevant information before general meetings, notably to ensure that all shareholders, irrespective of their residence, obtain information in time and are able to cast an informed vote; the removal of share blocking as a prerequisite to vote and its replacement by a record date; the rights to ask questions and table resolutions