| Series Title | European Voice |
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| Series Details | Vol.12, No.1, 12.1.06 |
| Publication Date | 12/01/2006 |
| Content Type | News |
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Date: 12/01/06 European shareholders have welcomed proposals from the European Commission to make it easier for them to have a say in companies they invest in outside their home country. "We welcome any reduction in the bureaucracy involved in shareholders exercising their rights, and the fact that the Commission has introduced the possibility of proxy voting and voting electronically goes in the right direction," said Jean-Pierre Paelinck, secretary-general of Euroshareholders, the confederation of European shareholder associations. He said that better participation would allow management of companies to gauge the interest of their investors. "If shareholders are not active enough then management cannot carry out its main task of listening to their requirements," he said. "This way they will feel their shareholders' interest." Under proposals published by the Commission on Tuesday (10 January), which have yet to be approved by MEPs and national governments, investors will be able to vote by proxy, or by post or email. Companies would be obliged to make relevant information for shareholders available at least one month before the general meeting. So-called share-blocking, which stops investors trading before the meeting, would be scrapped. But Paelinck warned that investors should be aware that there was no substitution for physical presence at a meeting. "Being at the meeting is the only way to get a true sense of the company's actions and potential," he said. Martin Morton of the UK Shareholder Association said that his members would pay particular attention to whether the directive changed anything for nominee shareholders - appointed by an investor who wished to remain anonymous. "We want to make sure that these shareholders don't lose their rights to attend general meetings," he said. The European Commission on 10 January 2006 presented a proposal for a Directive to facilitate the cross-border exercise of shareholders' rights in listed companies, through the introduction of minimum standards. The proposed Directive sought to ensure that shareholders, no matter where in the EU they reside, have timely access to complete information and simple means to exercise certain rights – notably voting rights – at a distance. |
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| Source Link | Link to Main Source http://www.european-voice.com/ |
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| Subject Categories | Law |
| Countries / Regions | Europe |
