Identification and assessment of legal and practical impediments for the use of digital tools for interaction between companies and their shareholders
Final report - Study
The study analyses the current legal framework and practices in the European Union as regards the use of digital solutions in the interaction between companies and shareholders. It assesses legal and practical impediments to the use of digital solutions and any possible solutions. The use of digital solutions is in most cases either required or allowed by national laws. Most companies and shareholders use digital solutions, in particular for communicating resolutions adopted in general meetings and meeting notices. The most commonly used solutions are emails and corporate websites. Even if... they can require significant investment, digital solutions overall allow for faster, cheaper, more convenient, more effective and safer interactions. In-depth research on ten Member States demonstrated that the development of digital solutions more adapted to the users’ needs significantly facilitates their adoption even if the legal framework is not particularly favourable. Impediments to the use of digital solutions were identified: bias in favour of traditional solutions; ineffectiveness of the legal framework; additional burden for using digital solutions; blocking points along the chain of intermediaries; risks related to the chosen technology; and lack of harmonisation of legislation across Member States. Recommendations were also formulated to overcome these impediments.
- Corporate author(s): Directorate-General for Justice and Consumers (European Commission) , EY Themes: Enterprise, Information technology and telecommunications
- Subject: digital technology, electronic mail, EU Member State, Internet site, national law, report, shareholder, type of business