ROME (Reuters) - An Italian parliament committee approved on Tuesday a measure to allow listed companies to issue shares giving key investors up to 10 times voting rights, lawmakers said, part of efforts to stem relocations of corporate headquarters to the Netherlands.
Italy is seeking ways to boost the Milan bourse's allure and keep firms domiciled in their homeland as a growing number of companies adopt Dutch governance rules, sometimes even listing in Amsterdam so that leading shareholders tighten their grip.
The government in April presented to parliament a bill that, among measures to encourage listings, allowed companies to issue shares with up to 10 times the voting rights attached. However, that bill limited the option only to the stage before a company was listed on the stock market.
As things stand, existing listed companies can only tap a so-called "loyalty share scheme" which at most doubles the voting rights of shares for investors who hold them for at least 24 months.
But under an amendment to the bill first approved by a committee in the upper house, the Senate, listed firms will be able to issue loyalty shares that give holders up to 10 votes after a series of 12-month intervals following the first 24 months.
Senators have also approved a separate amendment allowing investors more say over the terms under which a company's outgoing board can present a list of nominees for its renewal.
Such a set-up, common abroad, has only in recent years been adopted by some leading Italian companies including insurer Generali (BIT:GASI) and banks UniCredit (LON:0RLS) and Mediobanca.
The bill still needs various approval steps before entering into force.