The European Fund and Asset Management Association has responded to the European Commission’s public consultation and call for evidence on the Shareholder Rights Directive by calling for a targeted revision that removes practical barriers to shareholder participation, while warning that large-scale changes to the existing framework could make it harder to exercise shareholder rights. Its submission focuses on improving how shareholder participation works in practice, rather than rewriting the regime more broadly. EFAMA’s priorities include harmonising annual general meeting timelines and ensuring meeting materials are available with enough lead time, as the current 21-day notice period is often shortened in practice by earlier custodian deadlines. It also calls for digitalised Power of Attorney processes, workable split voting across all Member States, automatic end-to-end confirmation that votes have been cast, recorded and counted, and prompt rejection notices so errors can be corrected before deadlines. The association also wants clearer EU-level safeguards for the right to speak and submit interventions in all AGM formats, with hybrid meetings identified as the most suitable model for asset managers. In addition, it argues that the current comply-or-explain approach to annual engagement reporting by asset managers should be retained, and opposes any weakening of existing say-on-pay provisions.
European Fund and Asset Management Association 2026-05-08
European Fund and Asset Management Association urges targeted Shareholder Rights Directive revision and warns against wholesale changes
The European Fund and Asset Management Association has urged the European Commission to pursue a targeted revision of the Shareholder Rights Directive to remove barriers to shareholder participation, while warning that large-scale changes could hinder shareholder rights. EFAMA prioritises harmonised AGM timelines, digitalised Power of Attorney processes, workable split voting, automatic end-to-end vote confirmation and clearer EU-level safeguards for speaking and intervention rights in all AGM formats, with hybrid meetings seen as most suitable for asset managers. It also supports retaining the current comply-or-explain approach to annual engagement reporting and opposes any weakening of say-on-pay provisions.