ECGS comments on the Shareholders' rights directive proposal by the European Commission

In a paper publicly released on July 18th, ECGS partners have expressed their common position, commenting on the European Commission's proposal to amend the 2007 shareholders' rights directive.

Among other recommendations, ECGS strongly supports the European Commission in its will to increase the efficiency of the chain of intermediairies. As ECGS partners consider the voting right as a fundamental element of a stock, voting should not trigger any additional cost for the individual holder.

ECGS experts also emphasize on proposals to improve shareholder identification, decrease banks voting fees applied to the holders and increase investors' engagement and transparency as well as supporting the proposal by the commission to formalize the right for shareholders to approve directors' compensation policies and related parties transactions (RPT). 

Finally, ECGS takes the opportunity to comment on the Commission's suggestion that there should be a better understanding of the role of the shareholder voting research services. In this extent ECGS encourages the commission to take note of the recently published (2013), Best Practices Principles for Corporate Governance Research providers.

We encourage investors to consider this newly released paper which is available here and in the Publication section.

London, July 20th, 2014