Report on European company law is published
15 Nov 2002
The European Commission's High-Level Group of Company Law Experts has published its final report on A Modern Regulatory Framework for Company Law in Europe.
The report covers the issues considered by the group under the second part of its mandate, including such corporate governance issues as the role of non-executive and supervisory directors; management remuneration; responsibility of management for financial statements; and auditing practices. The Commission is considering the presentation of an action plan for company law in early 2003. Click to Download the Report (PDF 458k). Among the recommendations:
- "The costs of all share incentive schemes should be properly reflected in the annual accounts, and this accounting principle should be recognised in a European framework rule."
- "The responsibility for supervision of the audit of the company's financial statements should lie with a committee of non-executive or supervisory directors who are at least in the majority independent."
- "The Commission should review the Seventh Company Law Directive's provisions in the light of the need for better financial disclosure, and consider whether improvements can be made consistent with International Accounting Standards."