State Does Not Plan To Keep Extra Renault Shares: Macron

Economy Minister Emmanuel Macron reported that the French government has no plans to keep holding on to the additional Renault shares that the company is buying.

The move was part of a strategy to gain double voting rights that were supported by the new legislation.

The Ministry of Finance proclaimed publicly that it was going to increase its shareholdings in Renault from 15% to 19%. This will allow long-term investors to obtain double voting rights. The government itself will be one of the beneficiaries to take advantage of the new development.

The law was presented under Francois Hollande, who is the socialist president. The stockholders who have owned the Renault shares for more than 24 months will benefit from doubled voting rights. This means they will have more influence on the direction that the company will take. This strategy will also aim at gaining some control of the growing automobile market. Increased dividends are also in the portfolio of benefits projected.

Companies have the capacity to decide whether to act against the law that they declare as draconian. They can do this by introducing resolution proposals during their annual general meetings before the beginning of the summer season.

Legal procedure dictates that the support requirement for a successful opposition needs to be over two-thirds of the whole house. If these companies do not manage to fulfill this requirement within two months, then they will not be able to change the law.

The vehicle manufacturer continues to experience continued growth due to the more than ample sales that it has been making. Demand for the company’s vehicles is at high especially for its popular hatchback such as the Renault Cleo. The small cars are mostly popular especially in European countries due to the compact size that allows it to maneuver tight city spaces.

The share controversy is a reflection of how good the company is doing. Speculations suggest that the company will perform even better in the future.

 

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Abbott Michael

Abbott Michael

Michael joined US Markets Daily in 2009 and is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments.