The use of shareholder voting rights during the general assembly of company shareholders

Some financial products facilitate (“Financial Instruments”’) the use of voting rights that can be considered questionable under the law (“Questionable Uses of Voting Rights”). These Questionable Uses of Voting Rights become apparent when, using the Financial Instruments, an investor is in a negative voting situation. This situation occurs when an investor, being indifferent to the impact of his vote for the company (“Empty Voter”), uses his vote to implement a conflict of interest, sometimes by voting against the company interest. These Questionable Uses of Voting Rights also become apparent in the case of a hidden shareholding situation. This is where an investor is able to direct the vote on shares in a company without officially being a shareholder. Questionable Uses of Voting Rights highlight legally reprehensible conducts such as fraud and abuses of rights and power. To avoid Questionable Uses of Voting Rights, a number of measures can be taken. These include compulsory disclosure and limitations on voting rights.