A Directive amending the Prospectus Directive (the “Amending Directive”) was published in the Journal of the European Union on 11 December 2010 and came into force on 31 December 2010. Member states have until 1 July 2012 to implement the provisions set out in the Amending Directive.

As previously reported in Issue 2 of the Global Compensation Update, the Amending Directive extends the provisions exempting directors and employees from the prospectus requirement. However, White & Case considers that it is unlikely that the extension of these provisions will have much practical effect due to the existence of other applicable exemptions already contained within the Prospectus Directive, aside from enabling non-EU corporations to offer employee stock purchase plans to large numbers of European employees.