The programme for the harmonisation of Company Law in the European Essay

The programme for the harmonisation of Company Law in the European Union - Essay Example The first Commission Proposal for a Publicity Directive can be traced back to the year 1964, and the beginning of the EC harmonisation in Company Law is marked by the issuance of this First Directive in the year 1968. The first directive aimed at harmonising publicity prerequisites applying to companies, the conditions under which company transactions will be considered valid and the rules relating of the nullity of companies. The Second Directive, issued eight years later, deals with the establishment of public limited liability companies and the maintenance and adjustment of their capital. Also, it had an approach different from the first directive— many of the provisions lay down elaborate procedures rather than simply directing the Member States to make legislations to a certain end. Thus, for this reason, it has been the object of criticism in some circles. However, undeniably, this directive is of immense importance, represents a significant step towards company law harmonization in the European Community. Soon after the Second Directive, the Third and Fourth directives were issued. The Third company law directive presented a new framework for conducting cross-border commercial activities. It had provisions for co-ordination of the procedures applying to internal mergers within Member States. The Fourth directive was concerned with disclosure of financial information and the contents of a company’s annual accounts. It acts complementarily with the First Directive and is supplemented by the Seventh Directive, which deals with group accounts.