Brussels, 12/07/2007 (Agence Europe) - On Thursday 12 July, the Commission published a report setting out its views on simplifying EU rules governing company law, accountancy and auditing. Interested parties have until part way through October to submit their comments before the European Commission unveils new legislation early next year. In a press release, EU Internal Market Commissioner Charlie McCreevy explained: '"If we want to enable European businesses to compete in today's global market, we need to cut red tape. Many EU rules on company law and accounting are more than 20 years old and place unnecessary burdens on EU businesses. We now need to ask how they could be improved to meet today's requirements."
The Commission suggests several options. Option 1 - repealing company law directives that deal mainly with domestic situations (e.g. domestic mergers of companies, domestic divisions, capital of public limited companies and private single-member limited-liability companies) to focus on cross-border issues. The directives in question are directives 78/85/EEC and 82/891/EEC on national mergers and acquisitions, directive 77/91/EEC on capital requirements for limited companies and directive 89/667/EEC on limited companies with a single associate. Option 2 - removing certain information obligations in the company law directives (78/855/EC and 82/891/EEC). In addition to this, it recommends simplifying disclosure requirements for companies and branches (directives 68/151/EEC and 89/666/EEC). The Commission is considering further reduction in reporting and auditing requirements for small and medium-sized enterprises (SMEs). It is thinking of exempting companies with fewer than ten members of staff, capital of less than €500,000 and a turnover of less than €1 m) from the scope of directive 78/660/EEC, and greater flexibility in revising the definitions of EU companies (small, medium and large).
“This consultation is welcomed as today's proposals to reduce EU rules will struggle to deliver the expected and much needed reduction of administrative costs, most of which originate from regulatory requirements at national level,” said Jacques Potdevin, President of the European Federation of Accountants in a press release. (mb)