On the last meeting of the Competitiveness Council member states agreed on a general approach, pending the European Parliament's opinion in first reading, on a draft directive aimed at facilitating and simplifying capital related measures in public limited liability companies. The directive will enable member states, under certain conditions, to eliminate specific reporting requirements; to facilitate changes in share ownership and to provide harmonised legal procedures for creditors in the context of capital reduction.
The directive seeks to ensure that the capital of a company is maintained in the interest of creditors, while protecting the rights of minority shareholders. Directive 77/91/EEC, adopted in 1976, coordinates for the protection of the interests of members and third parties, national provisions applicable to public limited liability companies in the following areas: formation of companies, minimum share capital requirement, distributions to shareholders, increase and reduction in capital.
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