As a matter of principle, we demand clear, timely communication of both the reason for capital raisings and the precise details of how these are to be implemented. This includes a description of how the new funds are to be invested, as well as the short- to long-term prospects for success.

Shareholders should be granted pre-emptive rights in the case of capital increases. Pre-emptive rights may only be disapplied for a maximum of 20% of the share capital. For this purposes, all instruments will be regarded cumulatively.

Rights should be tradable on the stock exchange. Reasons should be given for capital increases and should promote the company’s long-term strategy. In this context, the total reserve capital still in existence and the percentage of the share capital that it accounts for should be given.

We reject capital increases that are designed to prevent hostile takeovers (“poison pills”).