Expert advisors on all things related to corporate governance, London Registrars (http://www.london-registrars.co.uk/), report on a new Action Plan put in place by the EU Commission intended to modernise and update corporate governance and company law in the European Union.

Following a Green Paper on EU corporate governance carried out by the EU Commision in 2011, there was an in-depth analysis of the effectiveness of current corporate governance rules for companies in the European Union. In addition, there was a public consultation on European company law. These studies showed that real improvements could be made in engaging shareholders; increasing transparency between companies and their shareholders; and in streamlining cross-border operations of companies within the EU. Several initiatives were consequently put in place which aim to modernise legislation with a view to ensure the sustainability and competitiveness of EU companies. These future initiatives form the basis of this new Action Plan.

Internal Market and Services Commissioner Michel Barnier said: ‘This Action Plan on company law and corporate governance sets out the way forward: shareholders should receive additional rights, but also fully assume their responsibilities to make sure that the company remains competitive over the longer term. Companies should also become more transparent in several respects. This will contribute to effective governance of companies,’ he concluded.

The EU Commission’s Action Plan foresees merging all major company law directives into a single instrument. Importantly, this would make EU company law more accessible and comprehensible and reduce the risk of future inconsistencies.

For full details of all the initiatives behind this Action Plan, visit the EU Commission website. To find out how to benefit from the advice and guidance of corporate governance experts London Registrars, visit the website at http://www.london-registrars.co.uk/.