The wave of European nationalism regarding takeovers has come at an awkward time for the European Commission’s latest directive on shareholder rights. Just as its proposal is about to be discussed in the European parliament, member states have become consumed by angst about takeover threats to their national champions.
This, therefore, is not the best moment for members of the European parliament to begin talking about the merits of shareholders. But one hopes they will rise above the emotion and see the directive for what it is – a useful and practical means of promoting the single market and helping keep the burden of regulation borne by European companies to a minimum.
Its basic purpose is practical: to make it easier for shareholders in European companies to exercise their votes at general meetings even when they cannot be present. It provides for shareholders to be properly informed, vote in absentia and appoint a proxy to vote and speak for them. It will no longer be possible to block trading of shares being voted.
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