First Meeting Of European Corporate Governance Forum Held

by Ulrika Lomas, for LawAndTax-News.com, Brussels

25 January 2005

Speaking on Thursday at the first meeting of the European Corporate Governance Forum, Internal Market Commissioner Charlie McCreevy stressed the need for European businesses to adopt good corporate governance practices in order to increase market confidence and stimulate investment.

“Europe has a role to play. That role is to co-ordinate where possible Member States’ efforts to improve corporate governance practices, through changes in their national company law, securities law or in corporate governance codes," he explained, continuing:

"There are different traditions in different Member States and those should be respected, but we must avoid unnecessary divergences which distort the single market and make life difficult for investors. Member States want and need to learn from each other’s experience. The Corporate Governance Forum brings together a vast amount of high-level experience and expertise. It has a key strategic role to play.”

According to the EC, since the publication in May 2003 of the Action Plan on Modernising Company Law and Enhancing Corporate Governance in the European Union, a number of initiatives have been undertaken, including the adoption in October of two recommendations on independent directors, as well as a proposal for the simplification of the formation, maintenance and alteration of companies’ capital.

Currently in the pipeline are a proposal for a 14th Company Law Directive on the cross-border transfer of the registered office and a proposal for a Directive on shareholders’ rights.

The Commission also published on January 7 a call for applications from suitably qualified individuals wishing to participate in an Advisory Committee, which will provide detailed technical expertise to the Commission for the preparation of legislative and implementing measures on corporate governance and company law.

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