DUFAS calls for stronger European framework for shareholder rights

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From DUFAS, we responded to the European Commission's consultations on the revision of the Shareholder Rights Directive (SRD). The SRD has clearly borne fruit in recent years: shareholders vote more often, engagement with companies has intensified and access to boards has improved. Still, there remains room for improvement, including in practical matters surrounding voting.

Smoother AGM logistics.

In practice, investors often have too little time to make informed voting decisions. Intermediaries apply early internal deadlines, with the result that the effective voting deadline is sometimes as early as 10 to 15 days before the shareholder meeting. Convocation deadlines, voting registration dates and cut-off dates should therefore be harmonized EU-wide. Automatic voting confirmations should also become mandatory so that errors in the voting chain are detected in a timely manner.

More control for shareholders

Shareholders should be able to vote annually on the CSRD sustainability report - just as they already do for financial statements. This will allow them to comment on the company's sustainability performance. In addition, there should be a mandatory shareholder vote on large, transformative transactions.

 

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