The PanSlovenian Shareholders' Association (VZMD) all from October 2014 has been actively cooperating in the harmonization of the text of the Proposed directive of the European Parliament and Council of the EU regarding changes to the 2007/36/ES directive for encouraging the long-term shareholder engagement and the 2013/34/EU directive regarding specific elements of the declaration about company management. Upon the conclusion of harmonizing the 3rd proposed compromise, the Expert Council of VZMD expressed satisfaction, as the greater proportion of proposals of VZMD were accepted; and were also coordinated with proposals of Better Finance - The European Federation of Financial Services users, where VZMD has a member on the Executive Board, Mr. Kristjan Verbič.

Upon considering the opinion of the legal service to the Council of the EU, it will be necessary to crystallize the text of the proposal of the directive, especially in relation to the widening of the directive's validity to all intermediaries from non-member states, which execute for shareholders the services of storage and management of securities in connection with EU shares, as well as for reasons of conformity of the proposed directive with the directive, which regulates personal data protection. VZMD will endeavor to also collaborate in the procedures of acceptance of implemented acts, for which the directive authorizes the European Commission.

In line with satisfaction upon the developments and results of the procedure of coordinating the proposed directive at VZMD once again is warning of completely different practices as well as catastrophic repercussions, which is brought up by – with the same directive connected, the proposed amendment to the Book Entries Securities Act (ZNVP), with which the Ministry of Finance of the Republic of Slovenia among others proposes the termination of registry accounts at the Central Securities Clearing Corporation (KDD), obscuring ownership structures, lowering the level of legal security, making it more difficult to attend meetings, additional financial and social burdens, explicitly reducing the number of minority shareholders and the proportion of domestic ownership in Slovenian companies, etc.

This is how Mr. Verbič described the proposed amendment to the Book Entries Security Act: »Securities will migrate to administration accounts of brokerages and banks, which will bring obscurity to ownership structures, the lowering of the level of legal security - for example, upon bankruptcy securities might end up in the bankruptcy estate, which has already been seen - it will burden and make it more expensive to participate at meetings as it will be necessary to have an individual acknowledgment and the extra cost, it might attract commissions in the (re)transfer of dividends, and yearly costs of management, demurrage etc. will make shareholders dispose of their securities and leave the capital market - therefore a totally irrational or even suicidal move from the point of view of a capital market functioning, as well as savings, (additional) care for retirement, etc.«

The third proposed compromise of the Directive for encouraging long-term shareholder engagement of the European Parliament and Council of the EU is at the same time an important fruit of collaboration of VZMD and 31 national associations of shareholders and investors within the framework of EuroFinUse – Better Finance. The European Federation of Financial Services Users on 27 October 2014 published the stance on relation to the proposed change to the 2007/36/EC directive, which was formed taking into account the opinions and commentaries of connected national associations.

VZMD already on 6 October 2014 sent its remarks and proposals also directly to the Slovenian Ministry for Economic Development and Technology – and sent on 28 October 2014, also to the Ministry of Finance its remarks and proposals regarding the Book Entry Securities Act. On the same day, at the 15th conference of the »European Corporate Governance Conference« in Milan, the Executive Director of EuroFinUse, Guillaume Prache, presented the collective point of view , where he pointed out that the directive should enable voting free of charge to all individual shareholders within the EU, also in cases when the shareholder comes from a country other than that of the body issuing the security. A number of European shareholders are still unable to exercise their voting rights in companies, while others must pay additionally for the exercise of the said rights. He also warned about the frequently unfriendly legislation to the association of individual shareholders and investors.  

The president of VZMD also presented proposals and remarks in relation to the proposed directive and problems of the Book Entry Securities Act to a number of eminent participants of international meetings and conferences, representatives of influential European companies, associations and institutions, among them in November in Brussels, upon the completion of the 8th tour as well as in December in Wiesbaden, within the framework of the 9th tour of the international business-investor programs of the VZMD: Invest to Slovenia - investo.si and the International Investors` Network - invest-to.net.