AFS' Position on the Shareholders Right Directive

Allied For Startups has submitted its response to the European Commission’s Call for Evidence on the evaluation of the Shareholder Rights Directive, highlighting how the rules can better reflect the reality of startups and scale-ups operating across the Single Market.

While the current framework has improved shareholder engagement, it still creates unnecessary complexity for fast-growing, cross-border companies. Shareholder rights should not only exist in law, but also be simple to exercise in practice.

Our key recommendations include:

1. Simplify shareholder identification and communication using tools like European Business Wallets and Digital Company Law
2. Enable clear legal certainty for digital and hybrid shareholder participation, including cross-border voting
3. Support employee ownership and align with EU-wide stock option discussions under EU Inc.
4. Keep rules proportionate for startups and scale-ups at listing
5. Ensure coherence with broader EU initiatives like the Listing Act and Omnibus I

If Europe wants to strengthen its innovation economy, shareholder rights need to work smoothly across borders and match how companies actually operate today.