Mithra, Biocartis, Nyrstar: are small shareholders being abandoned?
- Evelyne van Wassenhove
- Nov 26, 2024
- 2 min read
Updated: Apr 22
This is a great victory in our fight for better protection of minority shareholders in Belgium! Today marks an important milestone in our long-standing fight to strengthen the legal protection of minority shareholders in Belgium and restore confidence in our capital market. The approval by the Finance Committee of the House of Representatives of a request by N-VA MP Michael Freilich to organize a hearing on this subject is an important victory that should not be underestimated.
Trends Tendances Magazine asks: “Belgium's bad reputation”? “Over the years,” observes Michael Freilich, “Belgium has developed a worrying reputation in the field of corporate governance. The dynamics between directors, supervisory directors and shareholders regularly leave something to be desired, which undermines confidence in our financial markets. Minority shareholders are often victims of practices such as market manipulation, deception, and fraud.”
In addition to Nyrstar, a case we have been working on for five years now, Michael Freilich cites the cases of Picanol-Tessenderlo, Exmar, Euronav-CMB, Mithra, and Biocartis. “In each case,” he observes, ”we see that minority shareholders were inadequately informed and in some cases even pressured. We also note that directors and auditors acted in their own interests, and that reference shareholders had conflicts of interest and abused their power.”
Belgium has developed a worrying reputation in the field of corporate governance.
During these hearings, the FSMA itself will be called upon to provide explanations, alongside experts and minority shareholders who have been victims, with the aim of strengthening the FSMA's supervisory powers and the legal protection enjoyed by minority shareholders, and ultimately improving the attractiveness of Brussels as a location for investors and strengthening our economy.
Justice must therefore prevail: we must ensure that our legal system is equipped to fight predators. This is a key step towards a safer and more transparent investment climate in Belgium. Together, leaders, politicians, and institutions can build a future where standards, values, and economic prosperity go hand in hand!
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