Proxinvest discovered recently at a conference of the French SIF (FIR) ,and thanks to the CEO of the French cilvil servants pension fund ERAFP Philippe Desfossés, a quite challenging and refreshing innovation, an unexpected remedy to the recent decision of the French Parliament to generalize the double voting right as default regime in France.
This financial innovation has been designed by Patrick Bolton, Columbia University, and Frédéric Samama, SWF Research Initiative and Amundi, and it is described in the included article of the Journal of Applied Corporate Finance .
In two words, this is a serious and stimulating tool for encouraging investment stability without harming the “one share one vote” principle, a fair instrument (unlike double voting rights and increased dividend based on company share registers) for this basic over-water warrant for all shareholders is to be called after three or four years based on the ISIN code and on no other register, a superb and efficient deterrent against shares lending by funds.
At an invitation of Proxinvest fourthy investors gathered to hear Philippe Desfossés and one of the two inventors , and Amundi senior officer, Frédéric Samama.
The debate was quite extensive in New York and Paris, French specialized press offered a large echo to this very promising idea.
