The Impact of the European Shareholder Rights Directive (SRD) on Annual General Meetings (AGMs)

The European Shareholder Rights Directive (SRD) is a piece of EU legislation that aims to enhance shareholder engagement and improve corporate governance in publicly traded companies across Europe. The SRD applies to all publicly traded companies in the EU and European Economic Area (EEA) and has had a significant impact on annual general meetings (AGMs) across the region.

One of the main provisions of the SRD is the requirement for companies to provide shareholders with greater access to information about the AGM, including the agenda, the resolutions to be voted on, and the voting procedures. This helps to ensure that shareholders have the information they need to make informed decisions and participate in the AGM effectively.

The SRD also requires companies to allow shareholders to submit questions and proposals in advance of the AGM and to provide timely responses to these questions and proposals. This helps to ensure that shareholders can raise concerns and have them addressed by the company before the AGM.

Also, the SRD requires companies to establish clear and transparent procedures for appointing and removing board members and to allow shareholders to vote on the appointment and remuneration of board members. This helps to ensure that board members are accountable to shareholders and that their interests align with the companies.

Overall, the SRD has had a significant impact on AGMs across Europe, helping to enhance shareholder engagement and improve corporate governance. By providing shareholders with greater access to information and more opportunities to participate in the AGM process, the SRD helps to ensure that AGMs are more transparent and accountable and that the interests of shareholders are taken into account.