New regulations to give shareholders greater rights over listed companies were signed in to law today.
Tánaiste Mary Coughlan said the Shareholders’ Rights Regulations will make it easier for investors to hold management to account and give them a say about the way companies are run.
The new rules also promote giving shareholders better online access to exercise their right to vote at general meetings.
Ms Coughlan said the regulations would assist in increasing shareholders’ understanding, activism and engagement with the companies they own.
“Providing for increased transparency and making shareholder participation simpler would further enhance our corporate governance regime,” she said.
“It would assist shareholders to determine whether managers are acting in the best interests of the company’s owners.”
The Shareholders’ Rights (Directive 2007/36/EC) Regulations 2009 introduce new rights for shareholders and provide for timely access to company information.
Features include providing for shareholder participation across borders without the need to physically attend meetings, through voting electronically.
Companies will also be obliged to answer shareholders’ questions at general meetings and publish documents and information regarding a general meeting on their website, including the result of votes taken.
The regulations also abolish share blocking, a prohibition on trading in shares in the run-up to a meeting by shareholders intent on participating and voting at such a meeting.
It is replaced with a simplified procedure where a shareholder’s rights are based on the shares held on a specified date prior to the general meeting.
The Tanaiste said from an Irish viewpoint, implementation of the directive enhances shareholder rights already contained in existing Irish company law.
“These enhanced rights are reflected in particular in the right to put items on the agenda, table draft resolutions, ask questions and vote electronically,” she added.
PA