Shareholder Rights Directive II (SRD II)

The Shareholder Rights Directive II (SRD II) aims to strengthen the position of shareholders and encourage the long-term engagement of EU-listed company shareholders.

The Shareholder Rights Directive II (SRD II) defines the minimum requirements for the transmission of information to and from shareholders through intermediaries. These include how and when they should send information to clients.

Objectives of SRD II

• Ensure all investors are motivated to take part in the life of the company and support a sustainable EU economy.
• Facilitate the identification of shareholders through the intermediary chain.
• Encourage shareholders to attend and vote at general meetings.
• Encourage transparency in investment strategy and control over shareholder related-party transactions.
• Influence the remuneration of company directors to create a better link between pay and performance.

Euronext Securities and SRD II

Euronext Securities works with market operators, associations, regulatory bodies and domestic and European working groups. We ensure participants have the right processes and systems in place to meet their obligations. To learn more details about SRDII please check this blog article.

Regulations and Market Standards

Details of the SRD regulations can be found below.

1. Directive (EU) 2017/828 (17 May 2017). Regarding the encouragement of long-term shareholder engagement.

2. Commission Implementing Regulation (EU) 2018/1212 (3 september 2018). Regarding shareholder identification, the transmission of information and the exercise of shareholders rights.

3. Shareholders Rights Directive II – Market Standards