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Etisalat to Deny Foreign Shareholders from Voting Rights

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UAE based Etisalat has said that future foreign shareholders in the company will be denied voting rights with their shares.

Two months ago it announced plans to allow foreign shareholders to own up to 20 percent of the company, and has now clarified some of the details.

In a statement to the stock exchange, the company said that "Restrictions in respect of voting rights shall be applied to the shares owned by non-nationals," although it will graciously permit such shareholders to attend general assembly meetings -- to watch other shareholders vote.

In addition, the government's 60 percent stake will be converted into a golden share agreement, giving it a veto over any other shareholder holding more than 5 percent of the company, and the right to overturn management decisions affecting mergers or partnerships.

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Tags: etisalat  United Arab Emirates