Brussels, 04/10/2007 (Agence Europe) - The determination of the legal affairs committee of the European Parliament has paid off. At the beginning of September, MEPs criticised Commissioner McCreevy, who is responsible for the internal market, on his lack of action on the creation of a European private company (EPC) (see EUROPE 9495). This was an initiative which the EP and two major organisations which defend the interests of companies wanted to see brought to fruition (see EUROPE 9357, 9427). On Wednesday 3 October, Mr McCreevy announced to them his decision to move forward on this dossier. “I have decided to proceed with a legislative proposal for a European private company. This proposal should be ready by mid-2008 at the latest”, he said. He acknowledged “that the regulatory framework needs to be adapted to allow SMEs to make the most of increasingly integrated European markets”.
Going back on a promise he made last November (see EUROPE 9313), Mr McCreevy now no longer thinks that there is any need to legislate to improve the conditions for company mobility. “I have decided not to proceed with the 14th Company Law Directive” on the transfer of company registered offices in the EU, the commissioner said, pointing to the negative results of an economic analysis of the added value of such a directive. In his view, companies already have “the option to transfer registered offices” with the European rules on a “European company” and the entry into force “in December” of directive 2005/56/EC on “cross-border mergers”. He also mentioned the proposals made by the Commission in July for cutting red tape for businesses (see EUROPE 9467).
“One share, one vote”. “Ido not intend to propose any [legislative] action on [the principle of] one-share, one vote”, Charlie McCreevy noted elsewhere. The commissioner is thereby giving up the fight which he initiated in 2005 when he spoke openly in favour of such a principle (see EUROPE 9074). He mentioned the results of an external study of this sensitive dossier which has to do with the way in which listed companies are held and controlled in the EU. The study, which was carried out across more than 400 European listed companies, concluded that it was not possible to conclude that deviations from the “one share, one vote” principle had any effect on the economic results or management of listed companies (see EUROPE 9443). Stating that “a further layer of EU action is not the right way to go” on this dossier, Mr McCreevy pointed out the existing European legislation which contains provisions on the publication of information on listed companies' recourse to control enhancing mechanisms: - directive 2004/25/EC on takeover bids; - the directives on legal controls of annual and consolidated accounting, modified in 2006 (see EUROPE 9199); - the directive on cross-border shareholders' rights adopted at the beginning of February (see EUROPE 9367).
European Foundation. The commissioner also mentioned the EP's support for the European Foundation Statute. “Work on this is at an early stage and all options remain open”, Mr McCreevy said. He announced that his services would soon be engaging a contractor to carry out “a feasibility study” the results of which were expected by “mid-2008”. Finally, the Commission could decide by the end of the year whether action should be taken at European level to limit the liability of audit companies. It is likely to opt for a non-binding recommendation which would detail the possible options open to member states in this area. (mb)