European Union Company Law to be Adapted to the Digital Era
The European Union has decided to revise and adapt its company law rules in a bid to ensure that such regulations remain adequate for the modern digital age. The Romanian presidency of the Council has reached a provisional agreement with representatives of the European Parliament on a draft directive that aims to ease and encourage the use of online solutions in a company’s exchanges with the public authorities.
The new draft directive shall inter alia ensure and provide companies with the ability to register new branches and file documents in a complete online manner which shall ease the exchanges between the public authorities and the companies. Moreover, additional information regarding registered companies shall be made available and easily accessible to interested parties within the relevant registers online.
While the draft directive sets out a number of innovative regulations, it also sets out the crucial safeguards against fraudulent and abusive procedures which may arise within the online sphere, including the control of the identities and legal capacity of the persons setting up the company. On the other hand, the directive does not harmonise substantive requirements for the setting up of companies or the performance of business across the European Union.