Directive on shareholders' voting rights adopted at first reading

On 15 February 2007 following an agreement with the Council, the EuropeanParliament adopted the Directive on shareholders’ voting rights at firstreading. The proposal for the Directive was drafted with the intention ofremoving barriers to shareholders’ involvement in listed companies, particularlycross-border, by setting minimum standards. The provisions set out in theDirective include a prohibition on share blocking to prevent shareholders fromtrading shares for a period of time before a general meeting. The minimum noticeperiod of 21 days has been set although a shorter 14-day period forextraordinary general meetings is possible if electronic voting is available.The right to ask questions at general meetings, to add items to the agenda andtable draft resolutions, and to appoint a proxy holder are also dealt with. TheDirective provides that Member States must ensure that companies are notprevented from using methods of electronic participation and voting. The text isto be formally adopted in the coming months and published in the OfficialJournal. Member States shall have two years to implement the Directive intotheir national law.