Press release from ALDE: EU legislation on shareholders: increased transparency, less bureaucracy and better corporate governance

The ALDE Group in the European Parliament welcomes the agreement reached today between the European Parliament, the Council and the European Commission on the new directive regarding the encouragement of long-term shareholder engagement. This new piece of legislation will enhance the identification of shareholder rights and foster their engagement. Moreover, both SMEs and citizens will soon benefit from less administrative requirements and increased levels of transparency. Europe needs simplified rules and a common market that works more effectively.

Cecilia Wikström, ALDE shadow rapporteur, said: “I am pleased that we finally found an agreement between the institutions, after two years of negotiations. We have now managed to strike a deal that focuses on the core issues - to enhance transparency and promote long-term shareholder engagement without burdening companies with too many obligations”.

“We need to foster long-term ownership and responsibility by shareholders. The ALDE group has been instrumental in finding the right balance between transparency and reporting obligations for companies. This new legislation will be beneficial for shareholders, companies and civil society”

Note to editors

Today’s agreement will be subject to a vote by the plenary in spring 2017.