Global Capital Markets

The European Commission has published a draft directive on shareholder rights on 5 January. While on the whole the proposals seem reasonable and proportionate, there are one or two areas which are likely to cause difficulties for CBI member companies. In a letter to Sir Digby Jones, Commissioner McCreevy explained that, while the CBI had expressed concern at the proposed 30 day period for all shareholder meetings (both AGMs and EGMs), many shareholders had wanted a longer period. However, the Commissioner expressed his desire for a pragmatic approach, indicating that he would be willing to listen to argument in the Council and Parliament. In addition, he pointed out that while the proposals would grant shareholders a legal right to ask questions, this would be subject to measures at national level to ensure the good order of the meeting.

The CBI is keen to hear views from members on the practical effect of the Commission's proposals including the additional costs of requiring 30 days' notice for shareholder meetings including rights issues and whether the right to ask questions needs further amendment. Initial views should be sent in by 14 February. Contact: mailto:Susannah.Haan@cbi.org.uk