Eurosif response to ESMA’s call for evidence on SRD2

On Monday 28th Nov., Eurosif sent its comment on the ESMA’s call for evidence on the implementation of the Shareholder Right Directive 2 (SRD2) provisions [link].

Eurosif welcomes the opportunity to provide input to ESMA on this, particularly in view of the forthcoming report by the European Commission and potential review of the framework. Eurosif is in favor of a review of the Shareholder Rights Directive 2. It will offer opportunities to strengthen and improve a robust framework as well as accelerating both the digital and sustainable transition of the economy.

Eurosif’s position key points:

• SRD2 to be reviewed with a view to enabling the deployment of new digital technologies to improve information flows, effective communication between issuer and shareholder and the exercise of shareholder rights.
• Introduction of a harmonized definition of “shareholder” across the EU to simply the process of identifying the shareholders of an issuer on a cross-border basis.
• Harmonization to the greatest extent possible, the requirements pertaining to the attribution of entitlements (as regards record dates) and the sequence of dates for corporate actions and deadlines.
• Introduction to more robust requirements around shareholder engagement and stewardship efforts with respect to climate and sustainability targets, potentially involving a review of the requirements on the approval of executive remuneration by shareholders.

Contact details

Aleksandra Palinska, Executive Director – aleksandra.palinska@eurosif.org