5.2.2.1 The Transparency Directive

The aim of the Transparency Directive is to promote efficient, transparent, and integrated European securities markets.1 The Directive, adopted in 2004, reiterates the principle of equal treatment of shareholders and it therefore encourages active involvement of foreign shareholders through timely disclosure of information concerning shareholder meetings and through proxy voting.2 Facilitating cross-border voting, however, is clearly not the primary concern of the Directive. In fact, the bulk of the provisions of the directive seek to harmonize periodic disclosure obligations of issuers and ad hoc disclosure obligations of shareholders.3 The issue of cross-border voting has only been addressed head-on with the adoption of the Shareholders' Rights Directive.