McCreevy aims to introduce principle of one-share, one-vote

Charlie McCreevy, the European Union internal market commissioner, will seek to eliminate discriminatory treatment of shareholders by introducing the principle of "one-share, one-vote".

The effort would be the most radical project to date by the Commission in the field of corporate governance, and directly challenge many of the most powerful companies in the region.

More than a third of Europe's 300 biggest companies - including BP, British Airways, Carrefour, Volkswagen, Total and Carrefour - issue priority shares and stock with multiple voting rights, or impose ownership ceilings and similar measures.

"It is my goal to get the one-share, one-vote principle accepted across the 25 member- states," Mr McCreevy said.

He said he would not propose binding legislation on the matter, but would more likely issue a formal recommendation - the Commission's preferred tool in the area of corporate governance.

He conceded that it would take time to achieve his goal, and the Commission would have to proceed cautiously. "What we are going to try and do is go the way of a recommendation in this area," he said, adding that action was unlikely before next year.

"I come from this angle: the shareholder is king or queen. The shareholder should be able to exercise his rights, and there shouldn't be any restrictions. If you follow that principle, then other things fall into place after that."

Mr McCreevy also issued a rebuke to recent attempts by politicians and business leaders in Europe to keep out foreign investors. "There is a strong wind of protectionism blowing right across the EU," he said. "The Commission has to stand up and say no."

He cited recent French and Italian proposals as examples of this trend, but also voiced thinly veiled criticism of the protection enjoyed by Germany's public sector banks and the recent deal between carmakers Porsche and Volkswagen.

"The French government is putting forward additional laws that would protect or insulate business," he said. "The Italians are putting up a shield. Some countries have a situation where financial institutions can take over somebody else, but nobody can take over them. In some European companies, they are arranging the acquisition of a significant number of shares. Why? As a defensive mechanism." - (Financial Times Service)