How will EP plenary shape the new EU corporate governance law ?

By Doru Frantescu, Director and co-founder of VoteWatch Europe 

On 10 June, the EP plenary will vote on a proposal to reshape the EU company law (the Cofferati report). This analysis weights the odds that some of the hottest items in the proposal have to make it through the EP’s decision body, such as the extra rewards for long-term shareholders, shareholders’ say on directors’ pay, comply or explain principle versus binding regulationgreater involvement of employees in management decisions and the country-by-country reporting of profits by multi-national companies. The analysis takes into account the votes in the leading EP committee (JURI), the voting records of the political forces in previous occasions and the new balance of power resulted from the 2014 European elections.

Method

Many businesses and stakeholders are taken by surprise when they see what kind of EU law has actually come out of the EP. However, the analysis of the position of each key player and the overall balance of power can provide highly valuable insights, forecasting the way in which the EP will shape key pieces of legislation (expected to be) put forward by the Commission. This analysis will discuss what is likely to happen to some of the key proposals aimed at reshaping EU corporate governance legislation, which have been initiated by EU Executive (Commission) in April 2014[1]. Continue Reading

EP centre-right majority backs less legislation to strengthen competitiveness

60% of the MEPs voted in favour of a statement that backed the European Executive’s approach to withdraw from the legislative process those bills that are considered obsolete or that are suspected to add too much administrative burden on the institutions and businesses operating across the EU. This approach received the backing of the centre—right political families, Christian-democrats (EPP), conservatives (ECR), liberals and democrats (ALDE). The majority was formed also with the votes of British UKIP and most of the non-attached MEPs. Continue Reading