The European Parliament has voted on the proposal for a revised shareholders’ rights directive (the EP Proposal). The financial crisis had shown that many shortcomings in corporate governance of listed companies contributed to the financial crisis. With its initial proposal of 2014, the European Council aimed to enhance effective and long-term shareholder engagement within listed companies. Furthermore, it is envisaged that listed companies will benefit from identifiable shareholders that are engaged and use their voting rights in a well-informed manner.
This short read will describe the key elements of the EP Proposal, as well as a brief evaluation of those key elements for Belgian law and practice of listed companies in particular.