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Newsflash June 2017 - Two initiatives for strengthening shareholder engagement
On 17 May 2017 the European Parliament and the Council adopted Directive 2017/828 amending Directive 2007/36 on the encouragement of long-term shareholder engagement in listed companies (SRD II).
With SRD II, the EU wants to reinforce shareholder engagement and transparency in listed companies. Listed companies will be able to obtain shareholder identity information from intermediaries, and shareholders can exert greater influence on the remuneration of directors. Furthermore, shareholders and/or the board of directors are granted supervisory powers over transactions involving related parties. Finally, institutional investors, asset managers and proxy advisors have to comply with transparency and engagement obligations.
The facultative ”double-voting right” for loyal shareholders of listed companies, which is provided by the planned Belgian Corporate Law Review, also aims to strengthen the engagement of shareholders.