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European Commission Communication on the Action Plan: European Company Law and Corporate Governance

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The European Commission published last week a Roadmap outlining the next steps it plans to take towards the adoption of a Communication on the Action Plan: European Company Law and Corporate Governance. The Commission hopes to adopt this Communication by October 2012.

It will among others announce measures intended to address several reasons the Commission has identified for the lack of shareholder engagement. The Commission names in this context among other problems arising from the principal-agent relationship between investors and their asset managers.

The Commission again voices concern about the shortcomings in the application of the corporate governance codes when reporting on the comply or explain basis.