12 June 2023

EuropeanIssuers comments on the European Commission’s proposal to further expanding and upgrading the use of digital tools and processes in

Anew, while fully supporting the strengthening of the BRIS interconnection system and the "once-only" principle, EuropeanIssuers strongly opposes the introduction of new disclosure requirements for companies and the extension of the Directive to partnerships.

On 12th June 2023, EuropeanIssuers responded to the European Commission’s call for feedback on upgrading digital company law, following the previous response to the European Commission’s public consultation on April 2022.

Our members share common agreement on codifying the once-only principle, allowing information from foreign Commercial Registers to be accepted by authorities in other Member States. The EU Company Certificate, serving as conclusive evidence of company incorporation, is appreciated, but its content should be limited to the necessary information outlined in Article 14. Nonetheless, we identified a concern about the short timeframe for filing changes to update registers and we suggest integrating BRIS with other accessible systems without burdening companies.

Regarding partnerships, we disagree with the inclusion under the Directive and the imposition of disclosure requirements. Partnerships are distinct from limited liability companies and are sufficiently regulated by national laws. Similarly, we oppose the introduction of additional disclosure requirements for groups of companies, as existing legislation already covers this aspect. Financial statements, anti-money laundering measures, and transparency directives already provide relevant information on ownership structure. We also question the necessity of disclosing the place of central administration or principal place of business when different from the registered office, as current disclosure requirements adequately identify companies. Additionally, we express concerns about the proposed preventive administrative or judicial control and legality checks during company formation, which could impose undue burdens on businesses.

EuropeanIssuers continues to be committed to fostering a business-friendly regulatory environment that stimulates innovation and economic growth. Thus, we urge policymakers to consider our recommendations, emphasizing the need for a balanced approach to the amendments of the Company Law Directive.

***

 

To view EuropeanIssuers’ response, please click here

European Issuers

© EuropeanIssuers