Brussels, 17/04/2008 (Agence Europe) - On Thursday 17 April, the European Commission adopted two proposals for a directive to cut some of the administrative burden for small and medium-sized enterprises (SMEs) in the areas of company law and accounting (see EUROPE 9643). These legislative initiatives are part of the “Better legislation” scheme. “With these proposals, we deliver on the promise we made in July 2007 when we set out our plans for the simplification of the business environment. Other proposals … will follow in the summer” said Internal Market Commissioner Charlie McCreevy in a press release.
The Commission proposes to amend directive 78/660/EEC on annual accounts to remove the requirement on SMEs to provide a breakdown of net turnover into categories of activity and geographical markets in their annual accounts. It also clarifies the relationship between the International Financial reporting Standards (IFRS) and directive 83/349/EEC on consolidated accounts by removing from parent companies with no material subsidiaries the requirement to prepare consolidated accounts.
In its amendment of the first company law directive (68/151/EEC), the Commission suggests removing the requirement on companies to publish information on the company's setting up, its capital and its financial situation in national gazettes, given that this information is already available online in national company registries. It is also proposed that, when a company opens a subsidiary in another member state, it should be able re-use translations that have already been certified in one member state. This would mean amendment to the 11th company law directive (89/666/EEC). (M.B.)