EU shareholders' rights directive

  • The amended EU shareholders’ rights directive (SRD) came into force on 10 June 2017.
  • The amended SRD gives a framework for aligning long-term shareholder interests with corporate and investment governance.
  • This article provides questions which reflect the intent and spirit of the SRD to assist company leaders engender a culture of governance and stewardship that promotes sustainability.

Shadows of people overlaid on EU flag painted on ground

Following the 2008 Global Financial Crisis (GFC) and later corporate scandals, regulators are responding to society’s demands for alignment of corporate and investment governance with society’s long-term interests. The amended EU shareholders’ rights directive (SRD), Directive (EU) 2017/8281, came into force on 10 June 2017.

It applies to EU-listed companies and their shareholder intermediaries globally. This includes investment intermediaries such as institutional investors, asset managers and proxy advisors as well as banks and central securities depositories. The SRD amends Directive 2007/36/EC. It covers five areas in order to strengthen shareholders’ rights, promote stewardship of assets by investment intermediaries and protect long-term shareholder value.

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