Companies [EU]

Financial statements across the EU Directive 2013/34/EU on the annual financial statements, consolidated financial statements and related reports of certain types of businesses aims to: ensure the clarity and comparability of financial statements, other than international financial reporting standards (IFRS); limit administrative burdens and provide for simple and robust accounting rules, especially for small and medium-sized enterprises (SMEs); increase transparency of the payments made by […]

Disclosure of non-financial and diversity information by large companies and groups Directive 2014/95/EU on disclosure of non-financial and diversity information requires certain large companies to disclose relevant non-financial information to provide investors and other stakeholders with a more complete picture of their development, performance and position and of the impact of their activity. The directive applies to certain large companies and groups with more than […]

Statutory audit of public-interest entities It aims to improve transparency in the audit market to strengthen public confidence in the annual and consolidated financial statements of public-interest entities (PIEs). It does so by laying down rules on: audits of public-interest entities; organisation and selection of statutory auditors and audit firms to guarantee their independence and avoid conflicts of interest; supervision of statutory auditors and audit […]

Scope A Company law directive establishes minimum requirements to facilitate the exercise of shareholder rights at a general meeting of listed companies, particularly on a cross-border EU basis. It takes account of the possibilities offered by modern technology. The Directive applies to all companies with registered offices within the EU and shares admitted for trading in a regulated market. States may exempt UCITS undertakings the […]

EEIG Requirements A European regulation provides for the establishment of European Economic Interest Grouping (EEIG). The purpose of an EEIG is to facilitate and develop economic activities of members by pooling of resources, activities or skills. It is not intended the grouping should make profits for itself. If it does make any profits they will be apportioned between its members and taxed accordingly. Its activities […]

Mergers of Public Companies The third council Directive deals with mergers of public liability companies. In order to be subject to the merger, there must be a full absorption of one company in another or the formation of a new company. Whether mergers by acquisition or the formation of a new company the process consists of three stages The first stage is the drawing up […]

Certain aspects of company law   Directive (EU) 2017/1132 – codification of certain aspects of company law concerning limited liability companies In the interest of legal clarity and certainty, the directive codifies a series of previous directives on certain aspects of European company law. These directives concerned key areas of European company law, such as: disclosure of information on companies in the business registers; capital […]

Requirements of Accounts The fourth company Directive deals with the annual accounts of limited companies. The annual accounts are to comprise a balance sheet, profit and loss account, and notes to the accounts.  The Directive lays down principles governing the contents of the documents. The directive provides for two balance sheet layouts leaving it to the State to choose. Each provides for balance sheet items […]

General An EU Directive on takeover bids sets minimum guidelines for the conduct of takeover bids involving the securities of companies governed by the law of an EU state or where the securities are admitted to trading on a regulated EU market. It seeks to provide an adequate level of protection for holders of securities in the EU by establishing a framework of common principles […]