Luxembourg, 09/06/2005 (Agence Europe) - On the basis of a final compromise elaborated by the Luxembourg presidency, the Ecofin Council has set out a general orientation for a legislative proposal amending directive 78/660/ECC on annual accounts of some firms and 83/349/CEE on consolidated accounts. The European Parliament will give its opinion in first reading, very possibly in September. Jean-Claude Juncker stressed to the press that this directive was part of the European response to a number of financial scandals highlighted in the newspapers.
The main issue involves the treatments of small and medium-sized enterprises (SMEs). Germany, Netherlands and Sweden have voiced their concerns about additional administrative constraints on SMEs in a context of simplified Community legislation. One solution, however, consists of changing the thresholds as defined for SMEs in directive 78/660/ECC, in an effort to exempt more companies from new obligations. As suggested by the Dutch delegation, criteria on the total balance sheet and the turnover could be changed.
This draft directive imposed new transparency obligations on shareholders and investors as a way of preventing financial scandals. It establishes collective responsibility of the members in administrative, management and surveillance bodies in charge of elaborating the publication of financial accounts and management reports. It strengthens obligations on companies with regard to divulging information through transparency operations not included on the balance sheet and transactions carried out with associated parties. It introduces a declaration on corporate governance.