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22 May 2006

Council updates legal framework on annual accounts





The Council adopted a directive updating EU rules on the annual and consolidated accounts of European companies. The new directive modifies the 4th and 7th company law directives, together with accounting directives for banks and insurance undertakings. It establishes collective responsibility for board members in the drawing up and publishing of financial statements and annual reports, enhances transparency in related parties’ transactions and off-balance sheet arrangements and, for publicly traded companies, introduces a requirement for a corporate governance statement.

The directive was adopted without discussion at the Agriculture and Fisheries Council meeting.

The directive was adopted in first reading after approval by the Council of all of the amendments introduced by the European Parliament.

EU member states must transpose the provisions of the new directive into their national legislation within two years after entry into force.

Press release


© Council of the European Union


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