reported today that the European Union has published its much-anticipated Green Paper on Corporate Governance, which challenges shareholders to take their engagement with the companies they invest in seriously.

The EU is seeking a ‘critical mass’ of shareholders to be accountable, to effectively manage their relationship with the company and to cooperate with management. Other issues include scrutiny on comply or explain, mandatory shareholder vote on pay and gender diversity.

The purpose of the EU’s consultation on these issues is to find ways to encourage shareholders to take their engagement responsibilities seriously. The EU is seeking input on 25 questions total, and the consultation runs until July 22. A feedback summary document is due in the fall, when a decision will be made on whether the legislation is necessary or not.

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What do you think of the EU’s call to action for shareholders? Do you think the legislation will pass in the fall? Do you think the United States should hold shareholders of public companies to the same standards? Discuss!