Press Release: Company law: Commission proposes to simplify the formation, maintenance and alteration of companies’ capital

The European Commission presented a proposal on 29 October 2004 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 would amend the parts of the 1976 Second Company Law Directive covering the formation, maintenance and alteration of capital. This proposal was part of the Commission's Action Plan on Company Law and Corporate Governance, announced in May 2003 and was to be submitted for adoption under the 'co-decision' procedure to the EU's Council of Ministers and the European Parliament.