| Author (Person) | McLauchlin, Anna |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.12, No.9, 9.3.06 |
| Publication Date | 09/03/2006 |
| Content Type | News |
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By Anna McLauchlin Date: 09/03/06 MEPs are expected to approve on Tuesday (14 March) a new EU law aimed at making it cheaper for public liability companies or PLCs to raise capital. As the amendments to the European Commission's October 2004 proposal have already been agreed with national governments, the directive could come into force as soon as August 2007. Under the new rules a PLC - a company cross between a partnership and a corporation whose owners are shielded from personal liability - would no longer have to draft a financial report when raising capital. The law would also scrap requirements to call in an independent expert to value non-financial assets such as property - known as contribution in kind - used to pay for setting up a company or buying shares. And companies will be allowed to buy back more than the current limit of 10% of their own shares. The Parliament's rapporteur, Finnish centre-right MEP Piia-Noora Kauppi, has also simplified the original proposal by deleting provisions to allow the biggest minority shareholder to be bought out forcibly or insist on being bought out (squeeze-out and sell-out rights), because this is already covered by national company law. Manne Airaksinen from the Confederation of Finnish Industries, which has been working closely on the issue, said that the aim of the proposal was good but the final outcome "disappointing". "The new law has deregulatory aspects...but it attaches certain conditions to them and makes them technically very difficult to follow," he said. "As a result the effect in practice will be limited." Article reports that the European Parliament was expected to approve on 14 March 2006 a new EU law aimed at making it cheaper for public liability companies or PLCs to raise capital. |
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| Source Link | http://www.european-voice.com/ |
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| Subject Categories | Law |
| Countries / Regions | Europe |
