The first stage has begun for law transposing EU directive on the encouragement of long-term shareholder engagement
Spain Corporate Law Alert
The Ministry of Economy and Business has announced commencement of the comment period for the Preliminary Bill amending the revised Capital Companies Law, approved by Legislative Royal Decree 1/2010, of July 2, 2010 and other financial legislation, to adapt them to Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement.
The European directive now being transposed into Spanish law lays down specific requirements with a view to facilitating shareholder identification, the transmission of information and shareholders’ rights; increasing transparency for institutional investors, asset managers and proxy advisors; enhancing the monitoring and transparency of directors’ compensation; and improving the supervision and transparency of related-party transactions.
The period for filing comments ends on June 14, 2019. The complete wording of the preliminary bill is available here and the new legislation introduced by the European directive was discussed in Garrigues commentary: Modificación de la Directiva sobre los Derechos de los Accionistas.
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