European Parliament votes through the revised Shareholders’ rights directive
Earlier today (14th March 2017), the European Parliament adopted the revised Shareholders' Rights directive, which was presented by the European Commission in April 2014. The revision of the Shareholders' Rights Directive was launched to address the shortcomings in the corporate governance of listed companies identified after the financial crisis. It will contribute to the long-term sustainability of the EU companies; enhance the efficiency of the chain of intermediaries and to encourage long-term shareholder engagement. Shareholders will have stronger rights and the new rules will facilitate cross-border voting. Shareholders will now have a "say on pay" to guarantee a stronger link between pay and performance. The revised directive will also require institutional investors and asset managers to be transparent about how they invest and how they engage with the investee companies.
The final adoption step will take place in the European Council shortly. The directive will enter into force two years after its publication in the official journal.
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