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EU Action Plan
During 2006, the European Commission carried out a review of its May 2003 Action Plan for Company Law and Corporate Governance. The Plan contains the Commission's intentions for future EU proposals on company law. Following a public consultation in the first part of 2006, Commissioner McCreevy made a statement on 21 November 2006 to the European Parliament on the outcome of the review and consultation.
His statement was included in a speech which set out his general principles for the internal market. The full section on company law, which covers the Commission's current priorities for EU action, reads:
"Company law and corporate governance
Company law exemplifies how this policy mix can work. I am determined to give European firms a flexible regulatory framework that serves their needs, rather than imposing unnecessary regulatory burdens on them.
And I am committed to making company law a test case of how we apply Better Regulation principles. All initiatives on company law and corporate governance will build on public consultations and be subject to in-depth regulatory impact assessments.
· Firstly, we need to make sure that companies can fully reap the benefits of the Internal Market. Companies should enjoy full mobility within the EU - which is not the case today. For that reason, I have asked my services to start assessing the impact of a Directive enabling companies to move their registered office from one Member State to another. On that basis, I envisage submitting a proposal for a 14th Company Law Directive next spring.
· Secondly, many stakeholders expressed strong support for a Statute for the European Private Company. Your Committee has just voted on a report which also supports this idea. I have asked my services to start work on a study of the feasibility of a European Private Company Statute. We will examine all options for a simple, user-friendly statute which will also meet the needs of small firms.
· However, I am very cautious about introducing a multiplicity of European corporate forms. And I am not yet convinced about the ability of a European Foundation Statute to respond to the specific needs of foundations. Nonetheless, we will pursue our reflection.
· Beyond these individual initiatives, we will launch a simplification scheme to make life easier for companies. We need to simplify the environment in which they operate. We know there still exist unnecessary administrative burdens. We will measure the costs imposed by such burdens and then make proposals on how to remove them. I intend to present a communication on this crucial issue before next summer.
· As you are already aware, I also intend to continue to provoke a lively debate on the issue of proportionality between capital and control of companies.
Last but not least, there is the separate but linked question of auditor liability. This subject came up last year when we agreed a new 8th Company Law Directive, thanks in large part to the excellent work of Bert Doorn. The Commission agreed to analyse insurability of audit firms and the risk of loosing of one of the so-called Big Four audit firms. I hope I can rely on your support in work on this issue."
Details of the review can be obtained from the Commission's website (please use the link on the right of this page).