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Plans to simplify the law governing businesses in Europe have been published by the European Commission.
It wants the rules on company law, accounting and auditing to be simplified, with a range of administrative requirements considered outdated or excessive to be removed or reduced.
Proposals include less interference in business conducted within borders and a reduction of the reporting and auditing burdens on small- and medium-sized companies. A consultation will run until October 2007.
Philip Broke, co-head of White & Case’s corporate practice in London, says that although any review of European-wide company regulation is welcome, it would be surprising if the review led to any meaningful changes.
“It would be even more surprising if it were then made mandatory for member states to adopt any such changes into their national legislation; it being more likely that member states would be given the opportunity to adopt the changes if they so wished. UK company law is in good shape and the chances of this happening are therefore slim,” Broke comments.
