ALDE MEPs welcome report on shareholders engagement
Press release from the ALDE group in the European Parliament:
A strong compromise between the main groups of the European Parliament has allowed MEPs to today adopt a report on long term shareholders engagement, a text that aims to contribute to long-term shareholder engagement. The Alliance of Liberals and Democrats in the European Parliament believes this report is important if Europe is to address the roots of the financial crisis and corporate governance shortcomings. The report calls for more transparency on internal business transactions which could possibly jeopardise the company, but protecting at the same time business sensitive information. We welcome the flexibility clauses of the text and the comply or explain approach, leaving enough leeway for the management boards of companies. The ALDE Group also supports country by country reporting in order to contribute to full transparency of tax payments.
Speaking after the vote, Cecilia Wikström, ALDE shadow rapporteur, said: “Negotiations between the political groups on this directive have been long and tough. While the Social Democrats, Greens and far-left wanted to use the directive to regulate the salaries of senior management, Liberals and Democrats have fought for a proportionate directive that focuses on delivering full transparency where there is a real benefit for shareholders and other stakeholders, while striking a balance between the protection of personal data and existing EU corporate governance structures.
“I am delighted we have today reached a broad cross party agreement to stop the tsunami of unnecessarily detailed regulations which was initially being proposed by the Socialist rapporteur.
“Europe needs simplified rules and a common market that functions more effectively than today. We need to provide business owners and entrepreneurs the possibility to use more of their time on running and developing their businesses, than dealing with bureaucracy.”
Note to editors
In May 2015, the ALDE Group adopted a position paper with proposals to enhance transparency at EU level and which is a contribution to ensure better regulation. Read “Advancing better regulation” here.
