Shareholder Rights Directive
European Union law.
The EU Shareholder Rights Directive aims to stimulate long-term engagement by institutional investors and asset managers with companies, promoting long-term growth, and increasing investment and voting transparency.
A revised second Shareholder Rights Directive (SRD II) includes requirements for institutional investors and asset managers on the publication of an engagement policy, which discloses how their investment strategy is aligned with the long-term profile of client liabilities and performance of assets, key elements of their contracts and portfolio turnover. It also includes provisions on shareholder influence on the company directors’ remuneration and material transactions with related parties.