Out-Law / Your Daily Need-To-Know

The UK's Department of Trade and Industry today published a consultation on EU proposals to promote competitiveness and enterprise, part of the Commission's Action Plan to modernise company law and enhance corporate governance in the EU.

The consultation focuses on proposals relating to company reporting, capital maintenance rules and the transfer of company registered offices between Member States.

The Commission has already published proposals covering the first two of these areas, and the third is expected to be published shortly. The DTI is looking for industry comment on the proposals, so that it will be able to influence future EU talks.

"We believe that clear economic objectives for cross-border action are the best way of ensuring that the EU's company law programme promotes competitiveness and enterprise, contributing to growth and employment. Legislation should only be brought forward where it furthers these objectives," said Trade and Industry Minister Jacqui Smith.

"The proposed consultation document reflects the pro-active approach the government has sought to promote, including the involvement of stakeholders at an early stage to discuss EU company law and corporate governance proposals. We want to hear the views of business and investor communities so we can improve the alignment of the proposals with these economic objectives," she added.

The consultation will close on 3rd June.

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