Brussels, 20/02/2012 (Agence Europe) - On Monday 20 February, the European Commission launched a consultation to run until 14 May on the future of European company law, aiming to evaluate the quality of the current legal framework and adapt it if required to “the economic environment and the needs of society at the moment”, it indicated in a press release.
European company law covers a raft of rules affecting the interests of shareholders, creditors and other parties on which the activities of a company can have an impact. It has gradually harmonised areas such as the constitution and maintenance of the capital of public limited companies, takeover bids, disclosure requirements for branches, mergers and divisions and accountancy and financial information.
But with the growth in cross-border trade, the Commission explained, and the development of electronic trade, it is now necessary to focus on the legislative framework of the “21st century” and also for this consultation to take account of “current stakes” such as corporate governance, social corporate responsibility and the role of companies in innovation and growth.
In a list of 20 questions, the Commission wishes to know whether European law as it exists responds to the needs of companies (what should be the main objectives of the European company law? Are the current rules fit for today's challenges? In which areas is there need for further evolution? What relationship should there be between company law and corporate governance?), whether the existing directives should be merged into a single tool and whether the current legal forms of companies should be reassessed. The consultation also focuses on ways of facilitating the cross-border transfer of company headquarters and rules on mergers, groups of companies and minimum capital requirements. In 2011, the Commission launched a similar consultation on corporate governance; the Commission will therefore present the broad areas for both fields in the second half of 2012, it explained. (SP/transl.fl)