Brussels, 13/06/2007 (Agence Europe) - On Tuesday 12 June, the Council formally adopted the Directive on the cross border exercise of shareholders' rights. It was adopted without discussion on the Council's agenda in Luxemburg. The Commission is expected to publish a recommendation on elements related to cross-border voting rights for shareholders, such as shareholder loan operations, the role and responsibilities of financial intermediaries and depositary receipts. In a press release Commissioner McCreevy, in charge of the internal market, declared: “These new rules will mean that shareholders, no matter where they are located in the EU, can have their say about the way companies are run and can hold management accountable. This is good news for all shareholders”.
The key provisions in the directive are as follows: abolition of share blocking, which prevented the sales of shares over a period leading up to a general meeting (GM) and its replacement by a record date mechanism; minimum notice period of 21 days between the convoking of a general meeting and the date it is held (which can be reduced to 14 days in some cases); internet publication of the convocation and of the documents to be submitted to the GM at least 21 days before the GM; right to ask questions and obligation on the part of the company to answer questions; abolition of obstacles to electronic participation in the GM, including electronic voting; abolition of existing constraints on the eligibility of people to act as proxy holder and of excessive formal requirements for the appointment of the proxy holder; the disclosure of the voting results. (mb)