Council adopts Shareholders' Right Directive
On April 3, 2017, the Council approved the text already discussed during the last plenary session of the European Parliament and formally adopted the Shareholders' Rights directive.
The aim is to strengthening shareholders’ engagement in big European companies, contributing to their sustainability, which will result in growth and job creation.
The new directive establishes specific requirements apply to, among the others, remuneration of directors, identification of shareholders, facilitation of exercise of shareholders rights. It also introduces new transparency requirements for institutional investors which will put more weight on effective non-financial reporting by companies.
This is because investors will now be requested to report on how they take into account non-financial performance of companies into their investments’ decisions. The legislation will enter into force two years after the publication in the official journal.
Read the full press release