by QCA The Quoted Companies Alliance.
The European Union has adopted the Directive on shareholders rights, which is an attempt to implement minimum standards across the EU. A number of the provisions are less stringent than UK law. However, there are parts that will lead to changes in companies’ relationship with their shareholders from current UK practice.
The key provisions are:
- A minimum notice period for general meetings (GMs) of 21 days. This can be reduced to 14 days where shareholders can vote electronically and the GM approves a reduced notice period through a resolution, which must be renewed annually.
- Internet publication of the convocation and GM documents at least 21 days before the GM.
- The right for shareholders to ask questions and the obligation for companies to answer them.
- Disclosure of voting results on the issuer’s website.
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