Commission proposal on formation, maintenance and alteration of companies’ capital

29 October 2004

The Commission published a proposal for a Directive to make it easier for public limited liability companies to take certain measures affecting the size, structure and ownership of their capital. The proposal is part of the Commission’s Corporate Governance Action Plan issued in May last year.

The proposal would amend the parts of the 1976 Second Company Law Directive covering the formation, maintenance and alteration of capital. Changes to the existing Directive would include the limiting of the need for an expert valuation of contributions in kind when a company establishes itself or increases capital, and to introduce a right for the company to acquire its own shares up to the limits of distributable reserves.

Press release
Proposal
Detailed explanation

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