Press Release: European Commission proposes to strengthen shareholder engagement and introduce a “say on pay” for Europe’s largest companies

On the 9 April 2014 the European Commission adopted a company law and corporate governance package, which included:

- a proposal to revise the Shareholder Rights Directive to tackle certain corporate governance shortcomings in European listed companies, mainly relating to insufficient engagement of shareholders and lack of adequate transparency.

- a proposal for a Directive on single-member companies to make it easier to set up companies with a single shareholder across the EU; and

- a Commission Recommendation to improve corporate governance reporting by listed companies.

The aim of the package of measures was to improve the corporate governance of companies listed on the stock exchange, which in turn would help to increase the competitiveness and long-term sustainability of these companies, and to provide cost-efficient company law solutions for SMEs which operate across borders.

• Primary Source

ESO: Background information: Commission roadmap to meet the long-term financing needs of the European economy http://www.europeansources.info/record/press-release-commission-roadmap-to-meet-the-long-term-financing-needs-of-the-european-economy/

European Commission: RAPID: MEMO/14/274: Proposal for a Directive on single-member private limited liability companies – frequently asked questions http://europa.eu/rapid/press-release_MEMO-14-274_en.pdf

European Commission: RAPID: MEMO/14/275: Corporate governance package – frequently asked questions http://europa.eu/rapid/press-release_MEMO-14-275_en.pdf

European Commission: The EU Single Market: Company Law: Modernisation of company law and enhancement of corporate governance http://ec.europa.eu/internal_market/company/modern/index_en.htm

BBC News, 09.04.14: EU proposes new shareholder powers over executive pay http://www.bbc.co.uk/news/business-26951115

EurActiv, 09.04.14: Commission proposes greater shareholder power over executive pay http://www.euractiv.com/video/commission-proposes-greater-shareholder-power-over-executive-pay-49019

EUObserver, 10.04.14: EU commission calls for shareholder powers on corporate pay http://euobserver.com/economic/123808

The Guardian, 09.04.14: EU hurdle to RBS government stake sale removed http://www.theguardian.com/business/2014/apr/09/eu-removes-hurdle-to-royal-bank-of-scotland-sale

ESO: Background information: Proposal for a Directive Of The European Parliament And Of The Council amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement and Directive 2013/34/EU as regards certain elements of the corporate governance statement http://www.europeansources.info/record/proposal-for-a-directive-of-the-european-parliament-and-of-the-council-amending-directive-2007-36-ec-as-regards-the-encouragement-of-long-term-shareholder-engagement-and-directive-2013-34-eu-as-regard/

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