Implementing The Shareholders' Rights Directive In The UK

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Implementing The Shareholders' Rights Directive In The UK

Introduction

Companies whose shares are traded on a regulated European

Economic Area (EEA) market will have to consider making further

changes to their articles of association and the way they run

shareholder meetings as a result of the government's proposals

on implementing the EU Shareholder Rights Directive (the Directive)

next August.

The government has recently issued a consultation paper setting

out its proposals and draft implementing legislation (the

Regulations). Because the government is not proposing to publish a

summary of responses to its consultation paper until the end of

April 2009, many companies will be left in the difficult position

of having to make decisions on the approach to adopt for their 2009

annual general meeting (AGM) before the Regulations are

finalised.

This client guide identifies the key points likely to be

relevant to companies and suggests ways to deal with the proposed

changes and points where companies will want to persuade the

government to adopt a different approach from that proposed. It is

correct as at 1 November 2008.

Overview

The Directive sets minimum standards for companies incorporated

in the EU whose voting shares are traded on a regulated market in

the EEA (traded companies). It deals with notice...

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