EU softens audit committee rules
European business lobbying sees softening of audit committee regulations
European business has successfully lobbied to soften EU regulations on
mandatory audit committees for company boards.
Last night the European Parliament’s legal affairs committee voted in favour
of softening the EU auditing directive, which was drafted last year and put in
place strict rules for audit committees.
The Financial Times reports that business felt the proposed
regulations were too restrictive, and successfully lobbied the European
Parliament to adopt a more flexible approach.
The directive’s provisions on audit committees will now only apply to
countries where no rules exist.
Sir Digby Jones, director general of the CBI, welcomed the decision of the
legal affairs committee.
‘Business will be reassured by this amendment, permitting the flexible
approach contained in the UK code to continue,’ Jones told the FT.