On 12 December 2012, the European Commission presented its Action Plan on European company law and corporate governance. The publication of the Action Plan follows in the wake of the European Commission's Green Paper on the EU corporate governance framework (see our Europe Update of July 2011) and various public consultations.
Through its Action Plan, the European Commission intends to ensure that European company law and corporate governance rules will facilitate and enhance the competitiveness and sustainability of European companies. To that end, the European Commission presents a total of 16 priority actions. The actions, which range from legislative and soft law initiatives to raising awareness, each fall within one of three main themes:
- Enhancing transparency between companies and investors
- Encouraging long-term shareholder engagement
- Improving the framework for cross-border operation of companies.
In addition, the Action Plan also envisages the codification of all major company law directives.