Loyalty and Multiple Voting Shares in Listed Companies in Belgium: Current Legal Framework and Policy Proposals - European Company Law View Loyalty and Multiple Voting Shares in Listed Companies in Belgium: Current Legal Framework and Policy Proposals by - European Company Law Loyalty and Multiple Voting Shares in Listed Companies in Belgium: Current Legal Framework and Policy Proposals 22 3

In this article, we analyse the legal framework for loyalty voting shares (LVS) in Belgium and the implications of the EU Directive on Multiple Voting Shares (MVS). We evaluate the limited uptake and practical use of LVS, highlighting their function as a control-enhancing tool for insiders. Based on proposals by a working group within the Belgian Centre for Company Law, we present a policy framework to implement MVS in Belgium, including safeguards for minority shareholders, a 1:20 maximum voting ratio, and the possibility of midstream adoption. We conclude that MVS provide a more flexible and effective governance mechanism than LVS to stimulate long-term ownership and listing activity in Belgium.

European Company Law