The European Commission has adopted an action plan which focuses on a number of initiatives aimed at modernising European company law and corporate governance.

The need for this action plan is derived from the Commission’s analyses and consultations held over the last two years which have indicated that further developments in company and corporate governance have become necessary.

The plan of action aims to encourage and facilitate long-term shareholder engagement by increasing the level of transparency between companies and their holders and by simplifying the cross-border operations of European undertakings.

Internal Market and Services Commissioner Michel Barnier has said the action plan on company law and corporate governance “sets out the way forward: shareholders should receive additional rights but should also fully assume their responsibilities to make sure that the company remains competitive over the longer term”.

The key elements of the action plan aim to increase the level of transparency between companies and their shareholders; introduce initiatives which encourage and facilitate long-term shareholder engagement; and introduce initiatives in the field of company law that support European businesses and encourage their growth and competitiveness.

This information is supplied by Impetus Europe Consulting Group Ltd.

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