Brussels, 30/09/2002 (Agence Europe) - On Monday, the "Competitiveness" Council adopted conclusions inviting the European Commission to prepare an action plan on corporate governance. The conclusions state that such a plan should give an answer to the recent bankruptcy of companies, and explicitly cite the cases of Enron, Worldcom, etc. The plan should comprise legislative proposals and non-legislative proposals where necessary to strengthen and clarify several questions relating to corporate governance, such as the role of non-executive directors and supervisory councils, the remuneration of directors, the responsibility of directors in financial information, auditing practices, and the role of audit committees. The conclusions also note that a structure would be necessary within the EU Council for following the question of corporate governance.
The ministers heard an oral report by Jaap Winter, president of the high level group on corporate law, who is expected to present a report at the end of October including guidelines on five questions taken up in the text of the conclusions. During the debate, which was held behind closed doors on the basis of this report, several delegations asked what the range of eventual European action would be. Should there be European intervention or should one stick to subsidiarity? Should there be binding legislative texts or just "recommendations"? The debate has not been settled at this stage. Preliminary discussion has confirmed the almost cultural differences in the approach of the various Member States, notes one diplomat. Ministers reached the conclusion that it is "necessary to move forward on the idea of an action plan and consolidate reflection in this field", Council President Bendt Bendtsen told the press.