The world’s largest asset manager, BlackRock, has pitched into debate over US investor rights, backing tougher rules on shareholder advice and “greater transparency” in resolutions and annual meetings. According to Barbara Novick, BlackRock’s vice-chairman, and Ray Cameron, head of investment stewardship for the Americas, such improvements are possible through the proxy process, including around voting processes, shareholder proposals and proxy advisers.
A step towards a greater protection of shareholder rights had already been taken by the European Commission, with the Shareholder Right Directive II (SRD II), aiming to strengthen the position of shareholders. However, the directive is supposed to enter into force only on 10 June 2019 and has previously been criticized by BETTER FINANCE as limited, leaving important barriers to cross-border shareholder engagement within the EU virtually in place.
See BETTER FINANCE’s publication SHAREHOLDERS RIGHTS DIRECTIVE IMPLEMENTING ACTS: LAST CHANCE TO ENSURE RIGHTS OF INDIVIDUAL SHAREHOLDERS ARE TAKEN INTO ACCOUNT. To read more, visit Financial Times.