TGS Baltic performed a study on minority shareholder protection

04.02.2018 TGS Baltic performed a study on minority shareholder protection

TGS Baltic performed a study on minority shareholder protection. The report of this study was introduced to the European Commission. The purpose of the study was to carry out an assessment of the EU Member States’ frameworks related to the minority shareholders. 

The study contained:

1) analysis of the frameworks related to the minority shareholder protection in the Member States;

2) analysis of how the existing national frameworks work in practice;

3) comparison and benchmarking of the Member States frameworks;

4) identification of possible barriers to cross-border equity investment in the Single Market. The assessment of the study will also include how the existing EU law provisions on minority shareholders were transposed into national law.

Significance of the study:

1) geographical scope – the study covers all 28 EU Member States. TGS Baltic coordinates the work of national experts from all EU Member States as well as covers part related to Lithuanian legal framework. In addition, preparation of the study will also include conducting the survey with investors, supervisory institutions, listed companies, trading venue operators (anticipated number of respondents: 30 to 40 respondents from each Member State);

2) thorough analysis of the current legal frameworks in all EU Member States – including the analysis of hard law, soft law, and case law of each of the Member States. In addition, the study will cover a comprehensive comparison of national legal frameworks in order to ensure a systematic approach towards the assessment of the regulation of protection of minority shareholders;

3) importance of the results – the study will provide input into the European Commission on-going work on monitoring corporate governance developments in the EU; findings of the study may be used to support future initiatives of the European Commission in the field of protection of minority shareholders.

This field is of immense importance because the existence of efficient and well-working minority shareholder protection is a crucial factor in attracting foreign and cross-border investors to European companies as these investors are typically minority shareholders.