The undersecretary of the Ministry of Economy and Finance, Federico Freni, announced that Italy is trying to enhance the ability of listed companies to issue shares with increased voting rights.
The move would be part of an attempt to stop the continuous emigration of companies from Milan to the Netherlands. However, such an option will only be considered if it is accompanied by provisions to guarantee the rights of small investors who share ownership with the most influential shareholders.
In recent times, a regulatory setup that helps major shareholders maintain tight control over companies has prompted several Italian companies to opt for a Dutch registered office or even a listing in Amsterdam.
“Many stakeholders are calling for a stronger set of measures to allow long-term shareholders in listed companies to increase their voting power over time. We are looking into the matter,” Freni said.
“A dynamic and efficient capital market is a key factor in stimulating Italy’s economic growth at a time when higher interest rates make bank credit ever more expensive,” added the undersecretary.