Broadridge Financial Solutions today announced that it has signed an agreement with Euroclear to jointly strengthen shareholders’ governance rights by making it easier for investors to vote electronically at company general meetings. The agreement follows an earlier memorandum of Understanding between the two organisations signed in October 2010.
Under the new agreement, Broadridge and Euroclear will jointly offer a cost-effective and automated end-to-end proxy voting service, addressing the needs of all participants in the voting process including banks and brokers, issuers and investors.
The service will be made available in the relevant Euroclear markets, commencing with The Netherlands later this year. Broadridge and Euroclear are also working together to define the potential service model for other Euroclear markets.
“We have established a good, effective working relationship with Euroclear, and together we will drive change to raise governance levels and enfranchise the end-investor through a highly efficient, best practice service throughout the vote processing cycle in Euroclear’s markets,” said James O’Regan, general manager, Investor Communication Solutions, International, Broadridge.
“Broadridge and Euroclear are working intensely with capital market participants to offer a more comprehensive proxy voting service,” said Pierre Mahieu, director, Euroclear product management. “New corporate governance legislation, such as the Shareholders’ Rights Directive and Securities Law Directive, will oblige issuers and intermediaries to improve information flows on an end-to-end basis. Together, Euroclear and Broadridge will make the proxy voting process easier, efficient and transparent in a cost-effective manner.”
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