Directive on shareholders' voting rights adopted at first reading01/05/07 / cata_european-union-news

On 15 February 2007 following an agreement with the Council, the European Parliament adopted the Directive on shareholders’ voting rights at first reading. The proposal for the Directive was drafted with the intention of removing barriers to shareholders’ involvement in listed companies, particularly cross-border, by setting minimum standards. The provisions set out in the Directive include a prohibition on share blocking to prevent shareholders from trading shares for a period of time before a general meeting. The minimum notice period of 21 days has been set although a shorter 14-day period for extraordinary general meetings is possible if electronic voting is available. The right to ask questions at general meetings, to add items to the agenda and table draft resolutions, and to appoint a proxy holder are also dealt with. The Directive provides that Member States must ensure that companies are not prevented from using methods of electronic participation and voting. The text is to be formally adopted in the coming months and published in the Official Journal. Member States shall have two years to implement the Directive into their national law.