The European Commission has presented today a proposal for the revision of the Shareholder Rights Directive, a Recommendation on corporate governance reporting and a proposal for a Directive on single-member private limited liability companies. The Shareholder Rights Directive will tackle certain corporate governance shortcomings relating to the behaviour of companies and their boards, shareholders (institutional investors and asset managers), intermediaries and proxy advisors (i.e. firms providing services to shareholders, notably voting advice). The Recommendation aims at improving corporate governance reporting by listed companies. Finally, the Directive on single-member companies aims to facilitate the creation of companies with a single shareholder across the EU; it should make it easier for businesses to establish subsidiaries in other Member States as, in most cases, subsidiaries tend to have only one shareholder – a parent company.
Directive on the encouragement of long-term shareholder engagement and Recommendation on the quality of corporate governance reporting (‘comply or explain’)
Directive on single-member private limited liability companies
Conference “Taking Action: Promotion of Employee Share Ownership – Debating concrete policy options” – 30.01.2014
Several EU reports have highlighted the positive impact of employee ownership and participation on the economic results of businesses and on the motivation and retention of employees. Employees are also well placed to engage with their companies against a long-term horizon. For these reasons, employee ownership and participation may well be the key to resolving many of the problems arising from the financial and economic crisis
The Commission Communication “Action Plan: European company law and corporate governance – a modern legal framework for more engaged shareholders and sustainable companies” of 12 December 2012 outlines the initiatives which the Commission intends to take in this area in the coming years in order to modernise and enhance the current framework.
The initiatives, which will be both legislative and non-legislative, follow three main lines:
In addition, the Action Plan also launches a process of codification of most company law directives.
The Directorate General for the Internal Market and Services launched a broad public online consultation, seeking views from all stakeholders on European Company Law, as part of the reflection exercise launched at the end of 2010. The consultation follows the report of the Reflection Group and the Conference “European Company Law: The way forward” in May 2011. You will find below the consultation document and related information, the feedback statement from the public consultation, contributions from the stakeholders as well as additional information.
The Conference brought together practitioners and scholars from a variety of backgrounds to discuss key company law issues, with a view to taking stock of the state of play and reflecting on possible steps to take in the future.
You can see the recordings of the Conference via the links below.
Panel: "Purpose and tools of European Company Law"
Panel: "Corporate mobility and European Company Law"
Presentation: "European Model Company Act"
Panel: "Services and Company Law"
Panel: "Workers’ Participation"
Panel: "Tax and Company Law"
Panel: "Groups of companies and the current European Company Law framework"
The Action Plan set out in Commision Communication COM(2003)284 was open to public consultation for three months up until 31.8.2003.