Shareholder Rights Directive

 

SUMMARY OF:

Directive 2007/36/EC on the exercise of certain rights of shareholders in listed companies

Directive (EU) 2017/828 amending Directive 2007/36/EC

WHAT IS THE AIM OF THE DIRECTIVES?

KEY POINTS

A company must give shareholders information on general meetings, including 21 days’ notice, and the date, location, agenda, voting and participation procedures must be listed on its website.

Companies must also provide other information such as:

Shareholders have the right to:

EU countries must abolish any restrictions on shareholders participating at meetings through electronic means, and to accept proxy appointments via electronic means. Companies must also normally count the exact number of votes for each resolution and publish the results within a maximum of 15 days.EU countries may opt to set shorter deadlines.

Directive (EU) 2017/828 amends the 2007 directive, adding additional rights as follows:

FROM WHEN DO THE DIRECTIVES APPLY?

Directive 2007/36/EC has applied since 3 August 2007. The amended rules of Directive (EU) 2017/828 have applied since 9 June 2017 and had to become law in the EU countries by 10 June 2019.

BACKGROUND

See also:

KEY TERMS

Related party transaction: a transaction between the company and an individual or another legal entity with whom it has a prior connection. Examples are transactions with controlling shareholders, key managers or companies belonging to the same group.

MAIN DOCUMENTS

Directive 2007/36/EC of the European Parliament and of the Council of 11 July 2007 on the exercise of certain rights of shareholders in listed companies (OJ L 184, 14.7.2007, pp. 17-24)

Successive amendments to Directive 2007/36/EC have been incorporated into the original document. This consolidated version is of documentary value only.

Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement (OJ L 132, 20.5.2017, pp. 1-25)

See consolidated version.

RELATED DOCUMENTS

Commission Implementing Regulation (EU) 2018/1212 of 3 September 2018 laying down minimum requirements implementing the provisions of Directive 2007/36/EC of the European Parliament and of the Council as regards shareholder identification, the transmission of information and the facilitation of the exercise of shareholders rights (OJ L 223, 4.9.2018, pp. 1-18)

last update 24.02.2020