EC consults on evaluation and potential review of Shareholder Rights Directive

The European Commission (EC) has launched a call for evidence and consultation seeking views on its planned evaluation and potential review of the Shareholder Rights Directive (Directive 2007/36/EC, as amended by Directive (EU) 2017/828) (SRD). The SRD aims to protect and empower shareholders of listed companies by ensuring they have a say in the companies they invest in, and that their interests are represented and respected. The EC's initiative seeks to reduce fragmentation across EU capital markets and tackle longstanding inefficiencies, administrative burdens and financial costs faced by issuers, investors and intermediaries. The review is framed around potential simplification, digitalisation and streamlining measures to improve the functioning of the single market.

The consultation invites feedback from issuers, share investors (including retail investors), financial intermediaries, other financial market actors, Member State authorities, non-governmental organisations and the general public. In particular, the EC is seeking views on: (i) the challenges and shortcomings of the current SRD; (ii) the existing barriers to the efficient functioning of the market which hold back intra-EU investment; and (iii) the possible solutions and changes to the SRD that would help unlock investment, increase Europe's competitiveness, streamline and digitalise processes, simplify rules and reduce administrative and financial burdens. The deadline for comments on both the consultation and call for evidence is 6 May. The evaluation of the SRD will be conducted back-to-back with an impact assessment, which will guide the EC's policy decision and form the basis for a decision on whether the framework should be revised. The EC is expected to adopt a legislative proposal revising the current SRD in Q4.

Return to main website.