Standards

EU adopts shareholders' rights directive

The EU has formally adopted the directive on shareholders’ rights, bringing into law rules designed to improve investors’ timely access to information ahead of AGMs and strengthen their ability to vote at a distance.

Among the directive’s provisions are a minimum notice period of 21 days for most general meetings, the abolition of share blocking, and the right to ask questions and corresponding obligation on the part of the company to answer questions.

Charlie McCreevy, internal market commissioner, said: “These new rules 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”.

July 2007