21 February 2005

FEE proposal to amend the Fourth and Seventh Directives

The European Federation of Accountants (FEE) submitted its comments on the proposal to amend the Fourth and Seventh Directives in relation to board responsibilities, related parties, SPEs, and corporate governance statement. The profession welcomes the initiative to modernise company law and to enhance corporate governance.

Main comments on the proposal are:

There is a need to establish a definition of the term “arrangements” in Article 43.1 (7a)

The formulation of the requirement to disclose related party transactions should not go beyond IAS 24

The need to clarify the audit requirements for the corporate governance statement, including the implications of positioning the corporate governance statement in the annual report.

Representative organisation for the accountancy profession in Europe
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