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Voting rights of foreign share holders using the example of #AMC $AMC
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I don't speak for the German community, all EU shareholders or similar.
There are dozens of brokers and country specific regulations / laws within Europe. A full report would be like a scientific paper.
I have dealt with this topic in detail and in particular since the beginning of 2022 and would like to share my experiences and my knowledge here.
I often hear that e.g. we Germans would only hold Depository Receipts, CFDs or whatever kind of derivatives.
Yes. There are brokers who do not hold "real" shares, but these are actually quite few. Moreover, clients usually know this, provided they are a little knowledgeable about the subject.
US stocks can only be held in street name (unless we choose to DRS in the US - but this is comparatively complex).
In my experience, in the standard case 95-98% of the shares are held in custody through the German central securities depository "Clearstream" in Frankfurt. The type of custody is called GIROSAMMELVERWAHRUNG ->"collective custody".
In Germany there are only a handful of brokers that allow voting at shareholder meetings. However, only one mainstream broker stands out positively @comdirect .
There it is easy and inexpensive (about $3.20) to participate in the voting.
Another quite popular broker the @DKB_de charges however approx. ($315) thus scarcely the hundredfold. This is almost a cheek.
The basis in all cases is always the transfer of shares into US custody.
This is usually possible by a written order and within a few business days.
As soon as voting is possible, we have to actively approach our broker again and can then choose whether we give the broker the appropriate instructions or whether he sends us a control number with which we can then vote online.
Personally, I have been waiting for my control number for two weeks now and have not received one yet, despite further requests.
In the run-up to the AGM 2022, I had asked @CEOAdam and #AMC Investor Relations to consider actively querying the major international central securities depositories so that the shares held there are eligible to vote without any action on the part of the share holders. Unfortunately, there was no response to this.
However, to be honest, I could not ultimately determine whether this procedure is actually possible.
An alternative for all shareholders outside the US is of course the use of an internationally broker such as Interactive Brokers (and their connected introducing brokers). This would also be the basic requirement for being able to DRS your shares, whoever wants to.
I have already been in contact with BaFin (the German "SEC"): There is no legal basis due to which one could force the possibility to vote.
Conclusion:
international share holders are able to vote at shareholder meetings of US companies by choosing specific brokers.
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