Unlike certain neighbouring countries, in Luxembourg listed companies are often controlled by one or more major shareholders, rendering it difficult to provide examples of shareholders or investors having taken public and adversarial approaches. Probably the most memorable example of shareholder activism in Luxembourg is in relation to the ArcelorMittal merger in 2007. Furthermore, a significant number of Luxembourg companies are listed abroad and these entities often need to apply Luxembourg law as well as the rules of the foreign exchange (e.g., the New York Stock Exchange (NYSE) or Nasdaq). Luxembourg is about to adopt a bill of law (the Bill) supposed to transpose Directive 2017/828, which amends Directive 2007/36/EC on the encouragement long-term shareholder engagement, into national law. Luxembourg will do so by amending the Shareholder Act, which marked in 2011 an important step in Luxembourg corporate social responsibility legislation and provided shareholders with more statutory rights aiming to I crease their active participation in their companies.
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Source: The Law Reviews - October 2019