Europe: ECGF statement on empty voting and transparency of shareholder positions

The European Corporate Governance Forum has published a statement on empty voting and transparency of shareholder positions: see here (pdf). Here is an extract from the statement:

Empty voting and hidden ownership techniques increasingly exercise significant influence on companies, mostly listed companies, and the key decisions shareholders can take. The Forum is of the opinion that this deserves special attention in order to safeguard the integrity of the governance of European – especially listed – companies and the markets on which their shares are traded.

... The Forum recommends the introduction of an assumption in company law that shareholders who take part in a general meeting own the corresponding economic interest in the voted shares. A principle should then be introduced that where shareholders who have retained legal title to the shares and exercise the vote that goes with them but have ceded all or part of the economic interest should disclose this to the market above an appropriate threshold. Parties not making the required declarations may be considered to have made an untrue statement".