Better Corporate Governance
Date: 13-5-2003
The Commission will present its Communication on modernizing company law and enhancing corporate governance in the EU on 21st May. This will also put forward a specific set of priorities for audit controls. The Communication will propose improvements to existing EU regulations to ensure that EU companies are transparent and that EU citizens are protected against corporate fraud.
Building strong audit safeguards and corporate governance regulations has been an essential pillar of the Single Market. In order for investors and the general public to have confidence firms throughout the EU, it is important to have a strong regulatory framework operating at an EU level. Shareholders and other interested parties can be assured of the same level of protection throughout the EU. It is also easier for companies to establish themselves in any EU Member State, and promotes cross-border co-operation between companies in different Member States.
Corporate governance and audit safeguards have come under close scrutiny in recent years following cases against large firms in the United States. Fortunately, EU legislation put in place to facilitate the Single Market means that the EU was already protected against similar levels of fraud in Europe. The proposals, which will largely follow the recommendations of the Commission's High Level Group on Company Law Experts, aim to reinforce EU safeguards against fraud even further.
Communication on modernising company law and enhancing corporate governance in the EU: http://europa.eu.int/comm/internal_market/en/company/company/news/index.htm
Priorities for audit controls: http://europa.eu.int/comm/internal_market/en/company/audit/news/index.htm
Commission High Level Group on Company Law Experts: http://europa.eu.int/comm/internal_market/en/company/company/modern/index.htm