Regulatory Alerts2021-04-13
Law 5/2021 of 12 April amending the Consolidated Text of the Capital Companies Law regarding the promotion of long-term shareholder engagement in listed companies
Spain enacts Law 5/2021 to transpose EU Directive 2017/828, mandating institutional investors and asset managers to publish engagement policies and vote advice providers to adhere to transparency codes. The legislation strengthens corporate governance by affirming companies' rights to identify ultimate beneficial owners and maintaining the existing binding 'say on pay' mechanism for executive remuneration. These measures aim to counter short-termism, align corporate strategies with long-term sustainability, and enhance the stability of capital markets.
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