Implementing The Shareholders´ Rights Directive In The UK

Introduction

Companies whose shares are traded on a regulated European Economic Area (EEA) market will have to consider making further changes to their articles of association and the way they run shareholder meetings as a result of the government's proposals on implementing the EU Shareholder Rights Directive (the Directive) next August.

The government has recently issued a consultation paper setting out its proposals and draft implementing legislation (the Regulations). Because the government is not proposing to publish a summary of responses to its consultation paper until the end of April 2009, many companies will be left in the difficult position of having to make decisions on the approach to adopt for their 2009 annual general meeting (AGM) before the Regulations are finalised.