The Shareholder Rights Directive II (SRD II) is a European Union (EU) directive, which aims to strengthen the position of shareholders and ensure that decisions are made for the long-term stability of companies. The rules, which will amend the original SRD which came into effect in 2007, are designed to materially enhance corporate governance standards at companies which are registered within the European Economic Area (EEA), and whose securities are traded on EEA regulated markets.
The updated directive will require transposition into each Member State’s law. As a result of the directive, HSBC are implementing changes related to corporate actions messaging, proxy voting and disclosures messaging.
The Shareholder’s Rights Directive II is due to be implemented on 03 September 2020 for core operational changes.