Shareholder rights: new rules to improve the communication between companies and their shareholders enter into force

Today, new EU rules enter into application that will improve the communication between companies and their shareholders. Under the new Shareholder Rights Directive institutional investors and asset managers have to publish information on their investment strategies and engagement policies.  The harmonised transmission of information will contribute to efficient and reliable interoperability between intermediaries, the issuer and shareholders. Didier Reynders, Commissioner for Justice and Consumers, said: “Especially when meetings cannot take place in person, as we have experienced over the last few months, it is essential to facilitate the companies’ operation and support shareholders in the exercise of their rights. These new rules are an important piece of the puzzle, for the effective application of the Shareholder Rights Directive. They will ensure that shareholders are provided with all the right information in a transparent manner to exercise their powers fully – including voting rights, wherever they are.