BusinessCompany NewsEU directive puts pressure on directors

EU directive puts pressure on directors

An EU directive, set to be introduced in the middle of 2006, will see company directors facing the risk of lawsuits from shareholders across Europe if they accidentally omit important information from annual reports.

Link: EU-wide recognition for ‘accountant’ qualification

Known as the Transparency Directive, it will enable shareholders to sue if they lose money as a result of misinformation in the annual report.

It will mean a massive extension of directors’ liability in the UK – under English law, although directors can be sued over errors in their company prospectus, they cannot be sued over their annual report.

Companies will be forced to conduct due diligence and run extensive checks of their annual reports.

The directive will affect all listed companies.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor