03 May 2019
UBS Group shareholders refused on Thursday to endorse the performance of the Swiss bank’s leadership last year in a rare rebuke sparked by a French conviction for helping wealthy clients evade taxes.
Formal discharge of liability for board directors and senior management, typically a formality, won only 41.7 percent support in a shareholder vote, down from 89.7 percent the year before and below the required majority to pass.
The vote has no immediate repercussions, but analysts say it could leave the leadership more exposed to potential lawsuits from shareholders.
The last time such a vote failed to pass was in 2010, when investors withheld backing for UBS management in 2007 when reviewing performance during the start of the financial crisis.
A French court in February found UBS guilty of illegally soliciting clients and laundering the proceeds of tax evasion, ordering it to pay 4.5 billion euros ($5.1 billion) in penalties.
By Angelika Gruber, Reuters, 2 May 2019
Read more at Reuters
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