UBS Investors Revolt Over Record French Tax Evasion Penalty
- Shareholders refuse to back management, directors at meeting
- UBS fined $5 billion for helping French clients evade taxes
Photographer: Matthew Lloyd/Bloomberg
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UBS Group AG shareholders refused to back management and directors in a revolt against the bank’s handling of events that led to a $5 billion penalty for helping French clients evade taxes.
A usually routine vote to release directors and executives from liability failed to get the 50 percent needed at the bank’s annual general meeting in Basel on Thursday. The decision means shareholders reserve the right to legal action against management. The last time UBS investors refused to back executives was in 2010, after the bank ran up massive losses during the financial crisis.