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.