A major step forward for significantly improving the protection of minority shareholders.

Yesterday, the Finance Committee of the House of Representatives held a hearing on strengthening the position of minority shareholders in the Belgian capital market, an initiative of N-VA MP Michael Freilich.

We presented the Nyrstar case on behalf of a group of Nyrstar minority shareholders. Other experts also indicated that our legislation could be strengthened in several areas. But also that the application of existing legislation on good governance could be improved. The experts seem to agree that, in the event of serious indications of irregularities in listed companies, faster intervention should be possible.

Bernard Thuysbaert (deminor NXT) drew our parliamentarians' attention to the failure of the Belgian justice system to deal with investor complaints. Proceedings lasting more than 15 years are not uncommon, and there is a severe lack of resources and experienced investigators or specialized magistrates.

The FSMA itself has indicated that there is still room for strengthening its mandate. The FSMA is considering, in particular, (i) reversing the burden of proof when a listed company is convicted by the Sanctions Commission, (ii) the possibility of initiating legal action itself and demanding financial compensation from companies that flout the law, or (iii) a “minority shareholder majority.” Such measures would help to better protect minority shareholders. They would create a more level playing field and strengthen the confidence of small investors in the Brussels stock exchange.

Those who care about our economy and prosperity in Belgium can only welcome these initiatives. Among the parliamentarians present, a consensus also seemed to be emerging in favor of amending the legislation and extending the FSMA's mandate. To be continued.

---

Automated translation (Chat GPT)