By Shadia Nasralla LONDON, March 25 (Reuters) - Climate activist shareholder group Follow This, together with a group of European investors with $1 trillion under management, said on Wednesday they
Climate investors give BP until April 1 to include resolution or risk court action
Climate Activists and Investors Challenge BP Over Shareholder Resolution
By Shadia Nasralla
LONDON, March 25 (Reuters) - Climate activist shareholder group Follow This, together with a group of European investors with $1 trillion under management, said on Wednesday they have given BP until April 1 to include their resolution in the agenda for the oil major's shareholder meeting or they will take the firm to court.
Details of the Shareholder Resolution
- The group demanded BP disclose longer-term strategies under scenarios of declining oil and gas demand, but BP did not include the resolution in its notice of meeting.
Legal Action Threatened
- Follow This said it has instructed law firm Mishcon de Reya to send a formal letter to BP, giving the company one week to include its resolution on the agenda at its annual general meeting.
- In the letter, seen by Reuters, the law firm said: "Should the board now still fail to do so, our client will be left with no option but to seek the assistance of the courts to order the board to comply with its legal obligations."
Upcoming Annual General Meetings
- BP's AGM is scheduled for April 23.
- Follow This has filed a similar resolution for Shell's AGM scheduled for May 19. Shell has not published its agenda for the meeting yet.
- Typically, it is much easier for shareholders in Europe to get resolutions on AGM agendas than in the U.S.
Stakeholder Reactions
Follow This Perspective
- "This case is bigger than one resolution at one company," said Follow This founder Mark van Baal. "Shareholder democracy in the UK is at stake. If BP can block a valid resolution without explanation, any company can. We will not let that stand."
BP's Response
- A BP spokesperson said: "The board, having taken legal advice, concluded that the proposal from Follow This was not valid as it would be ineffective as a direction by shareholders to the board were it to pass at the AGM. The board is clear that all legally valid resolutions which are properly requisitioned will be put to shareholders.”
(Reporting by Shadia Nasralla. Editing by Mark Potter)
