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EC Directive – share capital of public companies See: ¶729 |
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Statutory reference: EC Directive 2006/68 |
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EC Directive 2006/68 has been published in the Official Journal and comes into force on 15 October 2006. The directive reforms the 2nd Directive on Company Law (EEC Directive 1977/91). Member states will have to incorporate the new provisions into national law by 15 April 2008. Under the new provisions, public companies will be able to: - allot shares for non-cash consideration without a valuation report in cases in which there is a clear point of reference for the valuation. Minority shareholders will have the right to require a valuation if they wish; - purchase their own fully paid shares up to the limit of the company’s distributable reserves (this is already permitted under English company law, but the new provisions will allow shareholders to authorise purchases for up to 5 years in the future instead of 18 months as at present); and - give financial assistance for the acquisition of their shares by a third party up to the limit of the company’s distributable reserves.
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LEGISLATION |